|Euro / LP||1,776.94||1,785.07||-0.46%||-3.37%|
|Euro / Dollar||1.1787||1.1841||-0.46%||-3.37%|
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 16, 2021.
End of week, Lebanese pound further deteriorated, having the exchange rate surpass the USD/LBP 20,000 in the parallel market reaching USD/LBP 23,000 on Friday 16th. This took place following the resignation of Lebanon’s prime minister designate after stating that the last card in his government formation deck didn’t bring any result after meeting with President Aoun. As such, Lebanese citizens went down to close roads and burn tires around the country as the Lebanese Lira continues to lose more of its value.
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 depreciated against the dollar-pegged LBP with the currency pair going from last week’s €/LBP 1,785.07 to €/LBP 1,776.94 by July 16, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP slightly decreased by 0.05% since 09 July 2021 to stand at 141.04 points on July 16th 2021.
International Forex Market
The Euro/USD depreciated against the dollar from last week’s €/USD 1.1841 to €/USD 1.1787 by July 16, 2021.
The US Dollar appreciated following the announcement of better news on the US labor market. Weekly jobless claims marked a pandemic low; lower by 26,000 to 360,000 in the week ended July 10. Moreover, the drop in new unemployment claims is in line with a broader economic recovery in the U.S.
Furthermore, US inflation hits 13-year high in June following the rise in consumer prices, thus adding pressure on Federal Reserve to tighten monetary policy sooner than expected.
Gold price increased by 1.49% at the end of this week to $1,826.48/ounce. In details, gold prices rose this week following weaker U.S. Treasury yields. Moreover, gold held up well also after the CPI data showed higher consumer prices.
In addition, Crude oil prices decreased this week by 1.15% to reach $73.58/Barrel. Losses extended as investors braced for more supplies following a compromise between top OPEC producers and as U.S. fuel stocks rose, thus raising concerns about demand in the world’s largest consumer.