During the week of 7 to 13 July 2017, Broad Money M3 increased by a weekly of LBP 240B ($159M) to reach LBP 206,662B ($137.09B). In addition, M3 recorded a growth rate of 8.38% on a year-on-year basis a 3.83% increase since the start of the year .
M1 decreased by LBP 213B ($141.29M) over the same period to LBP 9,726B ($6.45B). This decline is mainly due to a decrease in both currency in circulation and in demand deposits by LBP 108B ($72M) and by LBP 105B ($70M), respectively.
Total deposits (excluding demand deposits) increased by LBP 453.124B ($300.58M) over the same period, as term and savings deposits denominated in local currency increased by LBP 25B ($16.58M) during the week, and deposits denominated in foreign currencies went up by $284M.
The Broad Money dollarization rate increased from 59.794% on July 6th to 59.931% on July 13th. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and May 2017.
In the Treasury Bills auction held on July 20, 2017, the Ministry of Finance (MoF) raised LBP 679B ($450M), through the issuance of bills maturing in 6 months (M) and notes maturing in 36M and in 84M. The highest demand was achieved on the 36M bills, which held a 50.19% share of total subscriptions, while the 6M and the 84M bills accounted for the remaining shares of 14.39% and 35.42%, respectively. The discount rate on the 6M bills stood at 4.87% while the yields on the 36M and 84M notes registered 6.50% and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 478B ($317M).