Ministry of Finance Raised LBP 627B in its November 09th T-Bills Auction

During the week of Nov. 2nd – Oct. 26th 2017, Broad Money (M3) rose by a weekly LBP 98B ($65M) to reach LBP 208,556B ($138B). Hence, M3 grew by a yearly 7.39% and by 4.78% since the start of the year.

Over the same period, M1 increased by LBP 494B ($328M) to LBP 10,100B ($6.7B). The uptick may be attributed to the LBP 351B ($233M) increase in currency in circulation, alongside the LBP 143B ($95M) rise in demand deposits, respectively.

Total deposits (excluding demand deposits) fell by LBP 397B ($263M) over the same period, as term and savings deposits denominated in local currency (LBP) regressed by LBP 12B ($8M) during the week, while deposits denominated in foreign currencies slipped by $255M.

The Broad Money dollarization rate marginally slid from 60.39% on October 26, 2017 to 60.18% on November 02, 2017. According to the Central Bank, the overnight inter-bank rate steadied at 4% for the months of August and September 2017.

In the Treasury Bills Auction held on November 09, 2017, the Ministry of Finance (MoF) raised LBP 627B ($416M), 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 notes which accounted for 63.83 % of total subscriptions, while the 6M bills and the 84M notes accounted for the remaining shares of 32.04% and 4.13%, respectively. The discount rate on the 6M bills stood at 4.87%, while the coupon rate on the notes maturing in 36M and 84M stood at 6.50%, and 7.08%, respectively. Existing maturities exceeded new subscriptions by LBP 114B ($76M).

 

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