NEWS / Foreign Exchange

Budget Deficit As At End of September 2007

According to the Lebanese Ministry of Finance, Lebanon??™s budget deficit fell by 9.4% year-on-year to LBP 2,691 billion as at end of September 2007, down from LBP 2,970 billion during the same period in 2006.

Proposed 2007 Budget Law

The Lebanese Ministry of Finance released last week the 2008 proposed budget law pointing to a total spending level of LBP 11,475 billion ($7.61 billion), compared with LBP 11,840 billion ($7.85 billion) in the 2007 budget law. Similarly, revenues rose by 9.03% in the 2008 budget law to LBP 8,368 billion ($5.55 billion).

Merrill Lynch??™s Report on Lebanese Eurobonds

On the fixed income front, Merrill Lynch revealed in its ???Emerging Markets Economics & Strategy??? report on Lebanon dated October 30, 2007 that it maintained its ???underweight call??? on Lebanese Eurobonds in its emerging market portfolio. The report attributed Lebanon??™s unchanged weight to the precarious political situation, the implausible presidential election prior to the expiry of the presidential mandate, and the prevailing gap between the majority and opposition groups.

Saudi Arabia Raises Reserve Requirements

According to IDEA global, the Saudi Arabian Central Bank has raised the legal reserve requirements for banks operating in the KSA up to 9% last week from 7% previously.

Non-Farm Payrolls In October 2007

The U.S labor Department reported a 166,000 increase in non-farm payrolls in October 2007, the highest value since May 2007. October??™s increase in non-farm payrolls outpaced U.S. economists??™ expectations of a smaller 93,000 expansion.