Lebanese Pound Appreciated to €/LP1,631.27 as Greece Debate Continued

During the period 02-17 April 2015, demand for the dollar remained stable as shown by the Lebanese pound’s peg against the dollar which stabilized at $/LP 1,510-1,514 with a mid-price of $/LP 1,512. Foreign assets (excluding gold) at the Central Bank decreased by a monthly 1.06% from $38.89B by end-February to $38.48B by end-March. Meanwhile, the dollarization rate of private sector deposits stood at 65.51% in January 2015 compared to 65.71% in December 2014.

Over the above mentioned period, the Euro weakened by 0.01% to €/$1.0820. The euro continues to weaken on account of the ECB’s quantitative easing and on account of Greece’s debt repayment issue, as some experts see negotiations between Greece and the European Union extending until Mid-May at the earliest.

With a stronger dollar demand, gold dropped from $1,205.00/ounce on the 2nd of April 2015 to $1,202.42/ounce this Friday.

By Friday April 17th, 2015, 12:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP1,631.27 on the 2nd of April to €/LP 1,631.12. The Nominal effective exchange Rate (NEER) gained 0.48% to 164.17 points bringing its year-to-date gain to 11.44%. 

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