|Euro / LP||1,584.00||1,580.15||0.24%||-7.30%|
|Euro / Dollar||1.0507||1.0482||0.24%||-7.29%|
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 24 June, 2022.
On the parallel market this week, the Lebanese national currency has decreased against the dollar and crossed the psychological barrier of LBP/USD 30,000 amid the juridical conflict between the Judge “Ghada Aoun” and the governing body of BDL. “Riad Salame, The Governor has denied in a recorded TV interview all the allegations against him and declared that the decision of default on Eurobonds was taken by Hassan Diab government was a huge mistake.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,580.15 to €/LBP 1,584 by June 24, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly decreased weekly by 0.15% to stand at 163.40 points on June 24, 2022.
International Forex Market
The Euro/USD depreciated against the dollar from last week from €/USD 1.0482 to €/USD 1.0507 by June 24, 2022. The Euro has improved this week against the dollar but the peg is still below the pre-ECB meeting level of 1.0716. The upcoming months will be tough on the European countries and it will be a long winter for them amid the gas supply crisis due to the war between Russia and Ukraine.
Gold prices decreased this week by 1.23% by the end of this week to $1,823.49/ounce. As we know that the gold price is used to hedge against inflation, but the Fed and the ECB have both increased their interest rates in order to fight inflation, so as a result, gold price has decreased this week and also in term of outlook
Crude oil prices decreased at the end of this week by 6.44% to $11.92/Barrel. The world is expected to enter a global recession which will certainly affect the global demand for oil.