Broad Money M3 Rose to $133B

During the week ending February 23, Broad Money M3 increased by a weekly LBP170B ($113M) to reach LBP 200,808B ($133B). Moreover, M3 recorded a 7.90% annual increase and a 0.89% rise since the start of the year.

M1 decreased by LBP 97B ($65M) over the same period to LBP 9,066B ($6.01B). The drop is mainly attributed to the decrease of LBP 104B ($69M) in money in circulation and the increase of LBP 7B ($5M) in demand deposits.

Total deposits (excluding demand deposits) rose by LBP 267B ($177M) during the week, as term and savings deposits denominated in local currency and deposits denominated in foreign currencies registered respective growths of LBP 154B ($102M) and $75M.

Over the above mentioned period, the broad money dollarization rate slightly rose from 59.17% to stand at 59.18% on February 23. According to the Central Bank, the overnight interbank rate remained stable at 3% between November and December 2016.

In the Treasury Bills auction held on February 23rd, 2017, the Ministry of Finance (MoF) raised LBP 293B ($194M), through the issuance of bills maturing in 3 months (3M) and 12M and notes maturing in 60M. The highest demand was achieved on the 60M notes, which held a 37.83% share of total subscriptions, while the 3M and 12M bills accounted for the remaining shares of 35.20% and 26.97%, respectively. The discount rate on the 3M and 12M bills stood at 4.39% and 5.08% respectively while the coupon rate on the 60M notes registered 6.74%. New subscriptions exceeded existing maturities by LBP 136B ($90M).


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