Lebanese FX and TB markets remain stable
The Lebanese foreign exchange market remained relatively stable in the week ending July 19, reported BlomInvest Bank S.A.L. . The Interbank foreign exchange rate rose to close between Lebanese Pounds 1,512.25-1,514.25.
As a response to the government’s newly announced economic measures, investors gained confidence thus easing the pressure on the Lebanese currency.
In the fixed income market, although treasury bill subscriptions fell by 18.8 percent to LP 648 billion ($430 million) at the July 12th auction, the value of maturing bills rose 19.7 percent to LP 545 billion ($362 million). Of the total subscriptions, treasury bills with a 24-month maturity fell to 56.1 percent from 78.29 percent, 12-month TB fell from 8.5 percent to 4.1 percent, while short-term bills (ranging from 3 to 6 months) rose from 26.6 percent to 39.7 percent.
The meager activity on the secondary market demonstrates investors’ lack of confidence to enter the treasury bills market. Investors seem to be standing by, awaiting explicit economic reform plans by the government. — (MENA Report)
© 2001 Mena Report (www.menareport.com)