Demand for the dollar decreased over the prior week as reflected by the Lebanese pound’s peg against the dollar that went from $/LP 1,513-1,514 with a mid-price of $/LP 1,513.5 to $/LP 1,510-1,514 with a mid-price of $/LP 1,512, this week. Foreign assets (excluding gold) at the Central Bank dropped a monthly 0.37% from $38.87B at end-October to $38.73B by end-November. Meanwhile, the dollarization rate of private sector deposits stood at 65.87% in September compared to 66.13% in December 2013.
Outlook for slow inflation in the U.S. led the dollar to decline against the Euro. The euro strengthened against the dollar by 0.47%, ending the week at €/$ 1.2428.
Demand for gold strengthened amidst weak inflation prospects in the US. The price of gold went up from $1,205.32/ounce last Thursday to $1,227.55/ounce this week.
By Friday December 12th, 2014, 12:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP 1,864.78, the prior week, to €/LP 1,873.52. The Nominal effective exchange Rate (NEER) gained 0.56%, weekly, to 145.49 points, where its year-to-date gain reached 12.73%.