BEIRUT, 5 December 2004 — Europe may lose its position as Lebanon’s main trading partner if the euro maintains its dominance over the dollar, analysts said yesterday.
“The Lebanese economy and the purchasing power of its citizens have been weakened by the sharp appreciation of the euro against other currencies, especially the dollar,” said economist Nicolas Shamaas.
The euro hit a new all-time high against the dollar Friday, registering more than 1.332 dollars on international markets. Traders say sales volumes have dropped by over 40 percent since the euro first surpassed the dollar a year ago.
Lebanon is one of many countries hard-hit by the euro’s rise, as most imports are shipped in from Europe. Car dealers, already reeling from high customs and VAT charges, also complained that the soaring euro had dealt a blow to profits.