Stronger Demand for the Lebanese Pound on the Forex Market
| 11/09/2015 | 04/09/2015 | %Change | YTD | |
| Euro / LP | 1702.27 | 1679.66 | 1.35% | |
| Euro / Dollar | 1.1292 | 1.1142 | 1.35% | |
| NEER Index** | 167.07 | 167.11 | -0.02% | 13.41% |
Lebanese Forex Market:
Demand for the Lebanese Pound in the Lebanese Forex market strengthened during the week with the exchange rate moving within the peg range from $/LP 1,508–1,512 with a mid-price of $/LP 1,510 to $/LP 1,507–1,511 with a mid-price of $/LP 1,509. Foreign assets (excluding gold) at the Central Bank dropped by a monthly 0.57% to reach $38.59B at the end of August. As for the dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 65.08% by June.
By Friday 11th of September, 2015, 11:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP 1,679.66 to €/LP 1,702.27. The Nominal effective exchange Rate (NEER) shed a weekly 0.02% to 167.07 points, bringing its year-to-date gains to 13.41%.
International Forex Market:
The euro appreciated by 1.35% against the dollar to €/$ 1.1292 after second-quarter economic growth in the Eurozone was revised higher from 0.3% quarter-on-quarter and 1.2% year-on-year to 0.4% quarter-on-quarter and 1.5% year-on-year. The euro also got a boost from July’s positive German exports data. As for the dollar, it may regain traction once the Federal Reserve announces a hike in interest rates on September 17th.
Commodities:
Amidst increasing speculation about a future upturn in US interest rates, which would imply a stronger dollar, the price of gold declined by a weekly 1.59% to reach $1,106/once at 12:30 pm Beirut time.
