ECB follows the path of Fed and Increase Interest rates by 50bps for the first time since 11 years
| 22/07/2022 | 15/07/2022 | %Change | YTD | |
| Euro / LP | 1,531.27 | 1,514.83 | 1.09% | -10.38% |
| Euro / Dollar | 1.0158 | 1.0049 | 1.09% | -10.38% |
| NEER Index | 166.31 | 166.81 | -0.30% | 10.97% |
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 22 July, 2022.
On the parallel market this week, the Lebanese national currency witnessed a volatile performance in the parallel market amid the juridical conflict between the Judge Ghada Aon and the governor of BDL Riad Salame. As a result, the LBP/USD exceeded 30,000 in the mid-week before it relaxed to LBP/USD to 29, 600 on Friday.
As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,514.83 to €/LBP 1,531.27 by July 22, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly decreased weekly by 0.30% to stand at 166.31 points on July 22, 2022.
International Forex Market
The Euro/USD appreciated against the dollar from last week from €/USD 1.0049 to €/USD 1.0158 by July 22, 2022. On Thursday, the ECB announced a 50 basis point hike to interest rates, its first hike for 11 year, in a clear goal to fight inflation and lift the currency in the process.
Commodities
Gold prices increased this week by 0.97% by the end of this week to $1,721.89/ounce; In fact, the political/monetary measures taking by ECB and the Fed are keeping gold price on an acceptable range.
Crude oil prices increased this week by 2.22% and recorded $103.44/barrel, driven by a robust demand in India for gasoline, as the country is operating near their busiest level ever after the pandemic.
