During the week of 29 – 5 October 2017, Broad Money (M3) rose by a weekly LBP 766B ($508M) to reach LBP 208,981B ($138.63B). In addition, M3 grew by 7.42% on a year-on-year basis and a similar 7.42% since the start of the year.
Over the same period, M1 rose by LBP 742B ($492M) to LBP 10,374B ($6.88B). Its increase is mainly attributed to the respective LBP 373B ($247M) and LBP 369B ($245M) rises in demand deposits and in currency in circulation.
Total deposits (excluding demand deposits) rose by a slight LBP 24B ($16M) over the same period, as term and savings deposits denominated in local currency (LBP) regressed by LBP 196B ($130M) during the week, and deposits denominated in foreign currencies increased by $146M.
The Broad Money dollarization rate marginally dropped from 60.14% on September 28, 2017 to 60.02% on October 5, 2017. According to the Central Bank, the overnight interbank rate climbed to 4% between December 2016 and August 2017.
In the Treasury Bills Auction held on October 12, 2017, the Ministry of Finance (MoF) raised LBP 953B ($632M), through the issuance of bills maturing in 6 months (6M) and notes maturing in 36 months (36M) and 84 months (84M). The highest demand was achieved on the 36M which accounted for 54.65 % of total subscriptions, while the 6M bills and the 84M notes grasped the remaining shares of 8.62% and 36.73%. The discount rates on the 6M bills stood at 4.87% while the coupon rates on the notes maturing in 36 and 84 months stood at 6.5% and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 386B ($256M).