|Euro / LP||1,540.78||1,541.33||-0.04%||-9.83%|
|Euro / Dollar||1.0221||1.0224||-0.04%||-9.82%|
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 August 05, 2022.
On the parallel market this week, the Lebanese national currency was hovering around the LBP/USD 30,000 for the second consecutive week and ranging from the lowest level of LBP/USD 30,050 and the highest of LBP/USD 30,700. Despite the Central Bank promises to secure dollars through Sayrafa and extended it till end of August 2022, the exchange rate surpassed the 30,000 against the dollars while total volume of dollars traded through Sayrafa stood relatively around the same amounts as last week and totaling $191M by the end of this week.
As for the Euro/LBP currency pair, the Euro depreciated slightly against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,541.33 to €/LBP 1,540.78 by August 05, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly decreased marginally by 0.04% weekly to stand at 167.31 points on August 05, 2022.
International Forex Market
The Euro/USD slightly depreciated against the dollar from last week from €/USD 1.0224 to €/USD 1.0221 by August 05, 2022. In fact, the Euro currency weakened against the dollars this week as the euro zone economy looks gloomy and set to contract in the third quarter after Eurozone PMI readings slipped into decline in July indicating an unexpected contraction due to an accelerating downturn in manufacturing. The drop came after the ECB interest raise by more than expected, endorsing that fears about roaring inflation now undermine growth considerations.
Gold prices increased this week by 1.31% by the end of this week to $1,785.45/ounce. Gold prices stood at a one month high by the end of this week as a drop in Treasury yields and growing recession concerns pushed the safe-haven demand and kept the gold bars on the rise for its third straight weekly increase.
Crude oil prices dipped sharply this week by 19.53% and reached $88.15/barrel, the lowest level for the first time since Russia invaded Ukraine at the end of February. The drop came after the OPEC leaders Saudi Arabia and the UAE declared ready to deliver a significant increase in oil production should the world face a harsh supply shortage during the winter. However, with possibility of no gas in Europe for winter and potential signs of recovery for the Chinese economy, demand could come up again thus prices could likely to bounce higher in the coming future.