|Euro / LP||1,700.07||1,723.27||-1.35%||-7.55%|
|Euro / Dollar||1.1277||1.1431||-1.35%||-7.55%|
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 19, 2021.
The Lebanese lira has continued its bad performance in the parallel market and recorded around LBP/USD 23000 at the end of this week. BDL governor has decided to lift partially the subsidies on drugs without any comprehensive plan from the government. Concerning political news, PM. Najib Mikati has failed to achieve any remarkable progress regarding the political crisis between the political parties in the government, while Lebanese people are in despair as we are heading to a severe health crisis as more than 70% of Lebanese people will be unable to secure its necessary medications.
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 1723.27 to €/LBP 1700.07 by November 19, 2021. Moreover, the Nominal Effective Exchange Rate (NEER) of the LBP slightly increased weekly by 1.95% to stand at 147.63 points on November 19, 2021.
International Forex Market
The Euro/USD depreciated against the dollar from last week €/USD 1.1431 to €/USD 1.1277 by November 19, 2021.In details, the depreciation of Euro against the dollar can be related to a dual crisis; the number of corona cases are surging again in Europe which is refraining any effective economic rebound, while inflation rate is recording a high level making ECB to consider aaplyinh tighter political monetary.
Gold price slightly increased by 0.38% at the end of this week to $1,862.03/ounce. This increase was expected to be more aggressive this week due to inflation rate data, however some positive reports like The US retail sales data for October in the US markets has refrained any further increase in the price of gold.
In addition, Crude oil prices decreased this week by 3.68% and recorded $78.73/Barrel. These decreases in oil prices can be linked to the US President Joe Biden who is fighting the high prices of oils as it can be a threat for the US economic rebound. It’s expected that the US administration will take some steps to decrease the price of barrel in order to control the inflation rate.