|Euro / LP||1,590.11||1,584.45||0.36%||-6.94%|
|Euro / Dollar||1.0548||1.0510||0.36%||-6.93%|
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 December 09, 2022.
Meanwhile, on the parallel market this week, the Lebanese national currency has been oscillating around 41,662 LBP/USD with a minimum of 41,200 and a maximum of 42,700. The prolonged presidential vacuum, along with complete inaction, and lack of effective policy actions from our Country’s Leaders are adding extreme pressure on the Lebanese pound. Furthermore, the Central Bank governor Riad Salame announced that the new official exchange rate of LBP 15,000 per USD will go into effect on February 1, 2023 as part of a measure to unify the multiple exchange rates on the black market.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,584.45 by December 02, 2022 to €/LBP 1,590.11 by December 09, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound decreased slightly by 0.15% weekly to stand at 170.02 points on December 09, 2022.
International Forex Market
On Friday, the US dollar has bounced back against its major competitors, as the dollar index was trading 0.17% higher compared to last week at 104.72, despite the fact that the Fed is becoming less Hawkish. As a matter of fact, the Fed signaled softer rate hikes will be implemented in their next meeting on December 13 and 14.
The Euro appreciated against the dollar by 0.36% to $1.0548. Meanwhile, the British pound appreciated against the dollar by 0.17% to $1.2221. The UK set out a package of post-Brexit reforms to boost its financial services industry, with changes including relaxing ring-fencing capital rules to lighten the burden on smaller banks. The British government is trying to take advantage of regulatory opportunities from Brexit, seeking to change rules to free up capital markets and attract business to the City of London. However, Prime Minister Rishi Sunak has toned down the scope of his financial services reforms compared to the plans of his predecessor Liz Truss.
Japanese Yen traded at 136.26 this Friday December 9th, increasing by 1.45% since the previous week on December 2nd 2022. Meanwhile, the Chinese currency appreciated on Friday December 9, to reach USD CNY 6.9523 as China eased a range of Covid restrictions. Finally, the Canadian Dollar traded at 1.3638 this Friday December 9th, increasing by 1.26% compared to the previous week of December 2nd.
Gold prices slightly declined by 0.39% to stand at $1,790.63/ounce on December 09, 2022 compared to $1,797.63/ ounce last week, as traders await the trajectory of the Federal Reserve future rate hike.
The crude oil’ prices recorded a significant drop this week by 10.08% to reach $71.92 on December 9, 2022 compared to the previous week of December 2nd. The price of oil fell to its lowest level as China eased a series of Covid restrictions. Furthermore, China and Saudi Arabia upgraded their relations to a strategic partnership during the visit of Chinese President Xi Jinping in Riyadh, and agreed to expand their crude oil trade as the world’s largest oil importer and the top global crude exporter.