Demand for the dollar steadied over the prior week as reflected by the Lebanese pound’s peg against the dollar that remained at $/LP 1,510-1,514 with a mid-price of $/LP 1,512, since the 4th of September, 2014. Foreign assets (excluding gold) at the Central Bank rose by a monthly 1.15% from $38.42B at end-September to $38.87B by end-October. Meanwhile, the dollarization rate of private sector deposits stood at 65.87% in September compared to 66.13% in December 2013.
The euro weakened this weak as European Central Bank President Mario Draghi stated that the policy makers would increase asset purchases if inflation for the region diminished. Hence the euro lost 0.19% against the dollar, ending the week at €/$ 1.2439.
Gold headed its two-week back-to-back improvements as Russia bolstered gold reserves last month. The price of gold inched up from $1,161.58/ounce to $1,193.44/ounce this week.
By Friday November21st, 2014, 12:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP 1,878.80, the prior week, to €/LP 1,875.18. The Nominal effective exchange Rate (NEER) gained 1.88%, weekly, to 144.82 points, widening its year-to-date gain to 12.21%.