Complex Made Simple

Demand weakens for Lebanese pound

Dollarization rate of private sector deposits slid to 64.62 per cent in September 2015

Demand for the Lebanese pound in the Lebanese Forex market weakened versus the dollar, with the exchange rate moving within the peg range from $/LBP 1510.5–1514.5 with a mid-price of $/LBP 1512.5 up to $/LBP 1511.5–1515.5 with a mid-price of $/LBP 1513.5.

In addition to that, Central Bank of Lebanon’s foreign assets (except gold) declined by monthly rate equal to 1.34 per cent to $37.74 billion in October 2015.

The dollarization rate of private sector deposits slid to 64.62 per cent in September 2015 from 65.71 per cent in December 2014.

In the same period, the value of the Lebanese pound rose against the euro, as the exchange rate fell 0.6 per cent, to EUR/LBP 1621.17 last week to EUR/LBP 1611.37 this week.

During the week, the dollar has been bullish at the expense of the euro, with the exchange rate fell from EUR/$ 1.0754 to EUR/$ 1.0689, due to the negative impact on investors’ performance effects after the terrorist attacks in France.

(LBP1 = AED 0.0024, at the time of publishing)