|Euro / LP||1,580.15||1,592.22||-0.76%||-7.52%|
|Euro / Dollar||1.0482||1.0562||-0.76%||-7.52%|
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 by 17 June, 2022.
On the parallel market this week, the Lebanese national currency has remained stable at an average rate of LBP/USD 28,500 due to the continuous intervention of the BDL through the circular 161, though sayrafa transactions have been more limited.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,592.22 to €/LBP 1,580.15 by June 17, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased weekly by 0.47% to stand at 163.64 points on June 17, 2022.
International Forex Market
The Euro/USD depreciated against the dollar from last week from €/USD 1.0562 to €/USD 1.0482 by June 17, 2022. This week the Fed has decided to increase interest rate by 75 basis point, in a clear goal to control inflation rate. In Europe, the Governing council has met this week to discuss the current market situation, as they decided also to increase interest rate which can backfire as it will increase the borrowing cost, and decrease corporate profitability, and cause a recessionary trend.
Gold prices slightly increased this week by 0.71% by the end of this week to $1,846.21/ounce. It’s true that the gold price has increased compared to last week; however, it has dropped during this week, after the decision of the Fed to hike interest rates by 75 basis point. Of course, this act will help to control inflation rate, which in turn will increase the value of dollar, and decrease gold price due to the usual negative correlation between the US dollar and the gold price.
Crude oil prices decreased at the end of this week by 3.54% to $119.63/Barrel. In fact, several countries have decided to increase its interest rate, which will raise some worries about global economic growth, and will reduce global oil demand.