| 12/11/2021 | 05/11/2021 | %Change | YTD | |
| Euro / LP | 1,723.27 | 1,734.87 | -0.67% | -6.29% |
| Euro / Dollar | 1.1431 | 1.1508 | -0.67% | -6.29% |
| NEER Index | 144.80 | 144.05 | 0.52% | 0.00%
|
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 12, 2021.
The week, several events have contributed in the unprecedented deterioration of Lebanese lira against the dollar in the parallel market. The crisis between Lebanon and the Gulf countries is escalating due to political conflict between Lebanon and Saudi Arabia, while Lebanon needs to maintain good relations with its neighbors as this kind of conflicts can and will threat the Lebanese exportations to the gulf. Internally, BDL governor has requested fuel import companies to secure 10% of the amount from the parallel market as fresh dollar, which will put a further pressure on the demands of dollars in the black market.
In turn, the dollarization ratio for private sector deposits decreased from 80.11% in August 2021to 80.05% in September 2021.
As for Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1734.87 to €/LBP 1723.27 by November 12, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP slightly increased weekly by 0.52% to stand at 144.80 points on November 12, 2021.
International Forex Market
The Euro/USD depreciated against the dollar from last week €/USD 1.1508 to €/USD 1.1431 by November12, 2021.In details, the recent economic data from EU was disappointing as the Euro retail sales decreased by 0.3% in September while analysts expected that they would grow by 0.3%.
Commodities
Gold price increased by 3.54% at the end of this week to $1,855.05/ounce. Of course, this increase was expected amid the recent data that shows a rise in the US inflation rate. The gold is considered a safe assets and it’s used as a hedge against inflation risk.
In addition, Crude oil prices increased this week by 1.49% and recorded $81.74/Barrel. The holiday travel season will begin soon, as the demands are expected to increase more in the upcoming weeks.