|Euro / LP||1,794.56||1,825.47||-1.69%||-2.41%|
|Euro / Dollar||1.1904||1.2109||-1.69%||-2.41%|
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 June 18, 2021.
The Lebanese lira continues its devaluation in the parallel market and hit 15,200LBP/USD by the end of the week of 18, June 2021. On Thursday, the General Labor Union in Lebanon has announced a strike all over the Lebanese territory due to the failure to form a new government that can stop the economic collapse.
In turn, the dollarization ratio for private sector deposits decreased from 80.37% in December 2020 to 80.24% in March 2021.
As for Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week’s €/LBP 1,825.47 to €/LBP 1,794.56 by June 18, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP increased by 1.17% since 11 June 2021 to stand at 140.54 points on 18 June 2021.
International Forex Market
The Euro/USD depreciated against the dollar from last week’s €/USD 1.2109 to €/USD 1.1904 by June 18, 2021, the lowest since mid-April. The greenback regains its shape against the Euro as some analysis have claimed that the increase of inflation rate is transitory, and will likely to shrug off as soon as the impact of reopening eases.
Gold price decreased by 5.11% at the end of this week to reach $1,791/ounce. This week the Fed brought forward projections for the first post-pandemic interest rate hikes into 2023. In fact, high interest rates increase the opportunity cost of holding gold, which explained the decrease of the price of gold this week.
In addition, Crude oil prices increased this week by 0.30% to reach $72.69/Barrel. The price of crude oil stayed somehow constant this week amid some contradictions of economic indicators that have direct and indirect impact on the price of crude oil.