When Missiles are up, it’s time to Buy Gold

Euro / LP1,684.921,709.80-1.46%-1.39%
Euro / Dollar1.11771.1342-1.46%-1.39%
NEER Index153.82151.911.26%2.64%


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 25, 2022.

On a different note, the Lebanese pound traded with a lower range on the parallel market during the fourth week of February, between 21,100LBP/USD – 20,600 LBP/USD.

The steady black market rate has reflected some stability in the prices of goods. BDL aims to continue with his intervention policy over the exchange rate as this week it has renewed the circular 161 till the end of March 2022. On the other hand, this week, the government has signed the budget 2022, and as we write these lines they are discussing the electricity plan issued by the Minister of Energy Walid Fayad. We can clearly admit that this government represents some sort of stability as it has succeeded at least to stop the freefall; however many other issues need to be solved, on top of them is the Lebanese debts and the negotiations with the lenders and an agreement with the IMF in order to release the international aid.

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 1,709.80 to €/LBP 1,684.92 by February 25, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased weekly by 1.26% to stand at 153.82 points on February 25,2022.


International Forex Market

The Euro/USD depreciated against the dollar from last week from €/USD 1.1342 to €/USD 1.1177by February 25, 2022. Europe is unstable after Russia invaded Ukraine. The G7 countries with the US, are preparing to impose a severe sanctions on the Russian Economy. However, it’s unlikely that the Russian economy will be affected badly from these sanctions, bearing in mind that several European countries like UK, and Germany secure their usage of gas from Russia, and any disturbance in the relationships between them and Russia, will hurt hem a lot as these countries needs time to find a good alternative to the Russians gaz. We can say G7 countries along with the US cannot stop the invasion, and their hands are tied in front of Russian missiles.


Gold price increased by 0.97% at the end of this week to $1,905.64/ounce. Gold will always be a safe haven investment for investors, at times of inflation, economic collapse, or even war. When things go wrong, Gold is your best friend.

Crude oil prices jumped this week by 9.43% to $99.19/Barrel. World fears and uncertainties will increase all the energy prices, including crude oil. We except that oil price will retreat in the upcoming weeks, especially after “Joe Biden” announced indirectly that the US will not enter the war to save Ukraine.




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