|Euro / LP||1,802.62||1,792.87||0.54%||-1.97%|
|Euro / Dollar||1.1958||1.1893||0.54%||-1.97%|
Lebanese Forex Market
To-date, the Lebanese Pound (LBP) remained steady within the official range of USD/LBP 1,514 to 1,514.5, with a mid- price of USD/LBP 1,514.25 in the week of April 16, 2021.
In turn, the dollarization ratio for private sector deposits decreased from 80.37% in December 2020 to 80.04% in February 2021.
The Lebanese Lira continues its devaluation against the dollar in the parallel market and reached USD/LBP12400 this week. The IMF post-pandemic outlook report published earlier this week stated that Lebanon is the only country in the Middle East to witness further contraction. The current economic and monetary situation in Lebanon is catastrophic, as the Governor of BDL Riad Salameh warned that the central bank is no longer capable of subsidizing essential goods, and asked the policymakers to take actions amid this crisis. Based on all these circumstances, we expect that the Lebanese lira could depreciate further against the dollar in the upcoming weeks, and our outlook will remain negative.
As for Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week’s €/LBP 1,792.87 to €/LBP 1,802.62 by April 16, 2021.
International Forex Market
The Euro/USD recorded an uptick from last week’s €/USD 1.1893 to €/USD 1.1958 by April 16, 2021. The Euro appreciated and has approached to the psychological 1.2000 barrier against the dollar. Optimism about vaccines and strong global economy recovery are making the investors more bullish and invest more in riskier asset, including in Europe.
Gold price increased at the end of this week and witnessed an uptick by 1.17% to reach $1,766.16/ounce. In details, the price of gold increased amid weaker dollar and bond yields.
In addition, Crude oil prices increased this week by 6.36% to reach $67.2/Barrel. We believe that the price of crude oil will likely vary for a while between 65$ and 70$ amid the uncertainty due to global pandemic as the returne back to normality is still unknown.