|Euro / LP||1,709.80||1,717.25||-0.43%||0.07%|
|Euro / Dollar||1.1342||1.1391||-0.43%||0.07%|
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 February 18, 2022.
On a different note, the Lebanese pound traded with a lower range on the parallel market during the third week of February, between 21,100LBP/USD – 20,800 LBP/USD.
Also this week, Lebanon’s government on Tuesday approved the allocation of 360 billion Lebanese pounds ($18 million) to hold parliamentary elections in May 2022, adding that the UN and Western governments encourage Lebanese leaders to hold elections on time and stressed the importance of approving an electoral budget in order to proceed with the preparations promptly.
Moreover, on the trade side, Beirut Port has signed a 10-year contract with CMA CGM, responsible to develop and operate the container terminal as well as rebuild the destruction that took place after the explosion in August 2020.
In turn, the dollarization ratio for private sector deposits decreased from 80.09% in October 2021 to 79.46% in December 2021.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,717.25 to €/LBP 1,709.80 by February 18, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased weekly by 0.26% to stand at 151.91 points on February 18,2022.
International Forex Market
The Euro/USD depreciated against the dollar from last week from €/USD 1.1391 to €/USD 1.1342 by February 11, 2022.
The markets are considered to be on edge during this period. The European markets are cautious as the Russia-Ukraine crisis surges. However, on Tuesday the Euro has been somewhat positive as Russian troops have pulled back a bit from the Ukrainian border.
Gold price increased by 4.25% at the end of this week to $1,887.39/ounce. In details, gold prices rose to its highest since June, as investors hurdled to holding bullions after US president pointed to a Russian invasion on Ukraine.
Crude oil prices went down this week by 1.95% to $90.64/Barrel. Given that the US Dollar appreciation this week, crude oil prices dropped helped by the ongoing discussions with Iran and its possible, re-entry to the global supply market. Moreover, stockpiles across the globe are its possible currently at record lows and demand set to increase as services sectors pick up, as such crude oil prices are likely to remain elevated.