Ministry of Finance Raised $507M in June 8th T-bills Auction

During the week ending on the 1st of June 2017, Broad Money M3 rose by a weekly LBP 19B ($13M) to reach LBP 204,774B ($135.84B). Moreover, M3 recorded a 8.08% annual increase and a 2.88% rise since the start of the year.

M1 increased by LBP 432B ($287M) over the same period to LBP 9,701B ($6.44B). The rise is mainly attributed to an increase currency in circulation by LBP 261B ($173M) and  in demand deposits by LBP 171B ($113M).

Total deposits (excluding demand deposits) dropped by LBP 413B ($273M) over the same period, as term and savings deposits denominated in local currency fell by LBP 85B ($56M) during the week, and deposits denominated in foreign currencies also regressed by $217M.

Over the above mentioned period, the broad money dollarization rate dropped from 59.92% on May 25th to 59.77% by June 1st. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and March 2017.

In the Treasury Bills auction held on June 8, 2017, the Ministry of Finance (MoF) raised LBP 764B ($507M), through the issuance of bills maturing in 6 months (6M) and notes maturing in 24 months (24M) and 120 months (120M). The highest demand was achieved on the 120M notes, which held a 44.58% share of total subscriptions, while the 6M bills and the 24M notes accounted for the remaining shares of 12.08% and 43.34%, respectively. The discount rate on the 6M stood at 4.87% while the coupon rates on the 24M notes and 120M notes registered 5.84% and 7.46%, respectively. new subscriptions exceeded existing maturities by LBP 273B ($181M).

 

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