Economists around the world focused their attention on the event that emerged strongly today, which is the parity of the euro with the dollar price for the first time in 20 years.
According to the economic reports that accompanied this matter, what happened regarding the euro weighed heavily on global stock exchanges, amid the intersection of political influences on the currency’s path, especially the ongoing war in Ukraine.
Realistically, the euro has been under pressure in financial markets for a long time due to the effects of the Ukraine war, which affected Europe in particular, and the relatively conservative fight once morest inflation on the part of the European Central Bank.
Amid all this, and despite the decline that loosened its weight today, the euro returned to record a new high, this evening, Tuesday, modifying the course of previous declines that pushed it to approach parity with the dollar, but it remained under severe pressure from the potential energy supply crisis and uncertainty regarding the European Central Bank raising prices. Benefit.
What regarding Lebanon… is it affected by what happened with the “euro”?
As for Lebanon, which is witnessing an unprecedented economic crisis, its impact on the euro is limited, especially as it relies on the dollar as the main import currency. During the previous period, the Governor of the Banque du Liban, Riad Salameh, was indicating that part of the Central Bank’s foreign exchange reserves are in euros.
In fact, the value of these funds will be affected by the impact of the value of the currency at the global level, but the question that arises is: Does this matter have repercussions on the level of Lebanon’s reserve?
The researcher at the Institute for Market Studies, Karabid Fakerjian, says that “Lebanon’s impact on what is happening with the euro cannot be measured in real time,” explaining that “the most that can be benefited from is that the price of goods that we import from the European Union may decrease slightly and slightly,” and adds: “However, these goods are of high quality and high, and their price will remain high for citizens in light of a stifling crisis.”
In response to a question regarding the possibility of the Banque du Liban converting the euro into dollars, Fekrajian said: “This matter is not that simple, as the transfer of funds by a central bank from one currency to another requires studies and well-studied policies, and this step has many political dimensions associated with it. Lebanon’s relationship with the European Union.
He continued, “Practically, the Central Bank does not take such a step without adequate study of the euro’s situation, and the transfer of funds may contribute to a loss rather than to achieving gains, and therefore it is never easy.”
Source: Lebanon 24
