|Euro / LP||1,785.07||1,780.25||0.27%||-2.93%|
|Euro / Dollar||1.1841||1.1809||0.27%||-2.93%|
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 July 09, 2021.
However, on the parallel market, the Lebanese pound is trading at around 19,500 to the dollar on Friday 09 2021. A new record collapse for the Lebanese pound is triggered by possible resignation for PM designate Saad hariri that he claimed this week would be an appropriate exit. Moreover, an external blockade for non-forming new government is not an excuse where the French Ambassador Grillo declared that the blame for the crisis in the country is due to mismanagement by successive governments and the political class.
In turn, the dollarization ratio for private sector deposits increased from 80.37% in December 2020 to 80.50% in May 2021.
As for Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week’s €/LBP 1,780.25 to €/LBP 1,785.07 by July 09, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP decreased by 0.13% since 02 July 2021 to stand at 141.11 points on 09, July 2021.
International Forex Market
The Euro/USD appreciated against the dollar from last week’s €/USD 1.1809 to €/USD 1.1841 by July 09, 2021. In fact, the pair recovered sharply as the European Central Bank announced a new monetary policy strategy on Thursday adopting a 2% inflation target. Moreover, US index remained steady despite softer demand on the greenback. In turn, investors remained on their position regarding investing in the US dollars as they fear from renewed coronavirus infections due to the highly contagious Delta variant threatening the economic recovery.
Gold price slightly increased by 0.69% at the end of this week to $1,799.74/ounce. The jump in price of gold came after a drop in US Treasury yields. The soft rebound of yellow metal is an indicator that investors are moving towards safer investment due to their doubts about the efficiency of the Fed monetary policy.
In addition, Crude oil prices decreased this week by 1.20% to reach $75.73/Barrel. Despite positive vibes amid fast economic recovery, concerns over coronavirus spread are taking a toll on the worldwide economy and oil prices, where demand might fall. In fact, Japan which is known as the fourth largest oil user might declare a state of emergency for the Tokyo area by next August amid new wave of infections. Moreover, conflict and talks between the OPEC and its allies fell apart at a time Saudi Arabia rejected the UAE’s demand to raise oil production.