|Euro / LP||1,769.72||1,755.29||0.82%||-3.76%|
|Euro / Dollar||1.1739||1.1644||0.82%||-3.76%|
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 August 27, 2021.
This week, President Michel Aoun and Prime Minister-designate Najib Mikati have yet to agree on a new cabinet for more than one month since his delegation. As such, the Lebanese pound is stable trading at around 19,150 to the dollar this week in the parallel market.
Lebanon’s financial crisis reached new depths this month as supplies of imported fuel ran out, forcing even essential services to scale back or shut down as central bank declared it could no longer finance fuel imports at subsidized exchange rates because its dollar reserves had been so badly depleted.
Moreover, Major General Abbas Ibrahim, in a message to General Security staff received by Reuters on Friday, said state institutions had been undermined by “the great collapse”. Moreover, he ordered his officers to stand firm in the face of any sort of national crisis.
In turn, the dollarization ratio for private sector deposits decreased from 80.37% in December 2020 to 80.27% in June 2021.
As for Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,755.29 to €/LBP 1,769.72 by August 27, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP slightly decreased by 0.48% since 20 August 2021 to stand at 141.07 points on August 27, 2021.
International Forex Market
The Euro/USD appreciated against the dollar from last week €/USD 1.1644 to €/USD 1.1739 by August 27, 2021. In the US, Delta COVID-19 variant continues spreading despite the fact that the US economy is recovering. Moreover, US President Joe Biden refused to extend the withdrawal of American troops from Afghanistan, however, this received rejection from European leaders.
Gold price increased by 0.77% at the end of this week to $1,794.49/ounce, as US dollar fell this week, despite the positive US jobs data.
In addition, Crude oil prices increased this week by 9.74% and recorded $72.11/Barrel, after U.S. data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.