|Euro / LP||1,734.87||1,753.54||-1.06%||-5.66%|
|Euro / Dollar||1.1508||1.1632||-1.06%||-5.66%|
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 November 5, 2021.
This week, the national currency remained stable in the parallel market at the rate range of USD/LBP 20,300 and USD/LBP 20,700. Tension followed Saudi Arabia’s decision to ban Lebanese imports and expelled Lebanon’s ambassador from the Kingdom on October 29th. In details, diplomatic dispute followed the Lebanese Minister of Information George Kordahi’s remarks regarding the war in Yemen years ago. As such, Prime Minister Najib Mikati calls on Information Minister to prioritize the national interest.
In turn, the dollarization ratio for private sector deposits decreased from 80.37% in December 2020 to 80.21% in August 2021.
As for Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1753.54 to €/LBP 1734.87 by November 5, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP slightly increased weekly by 0.58% to stand at 144.05 points on November 5, 2021.
International Forex Market
The Euro/USD depreciated against the dollar from last week €/USD 1.1632 to €/USD 1.1508 by November 4, 2021. The US Dollar appreciation was affected by the drop in the number claims for unemployment benefits to the lowest level in nearly 20 months last week. In fact, the economy improved and regained momentum amid a significant improvement in public health.
Moreover, following Nov. 3rd meeting, the Federal Reserve announced that it ought to keep interest rates steady, as such keeping the federal funds rate at a range of 0 to 0.25 percent.
Gold price slightly decreased by 0.20% at the end of this week to $1,791.7/ounce. Gold was expected to slip ahead of Federal Reserve’s decision on Wednesday. Investors feared the rising inflation should the US move forward with the stimulus plan.
In addition, Crude oil prices dropped this week by 4.84% and recorded $80.54/Barrel. In fact, oil prices fell to a near four-week low, after U.S. crude stocks rose more than expected. Moreover, U.S.’ crude oil inventories increased to around 7.7 million barrels, however, the market expected an increase of only 2.3 million barrels as data by the Energy Information Administration (EIA) showed on Wednesday.