Ministry of Finance Raised $90M in its May 31st T-Bills Auction  

During the week ending on May 24th, Broad Money (M3) decreased by a weekly LBP 200B ($133M) to reach LBP 210,295B ($139). On a yearly basis, M3 added 2.64% and rose by 1.06% since the start of the year.

M1 declined by LBP 116B ($77M) to LBP 10B ($6.63B) over the week as currency in circulation decreased by a weekly LBP 151B ($100M) and as demand deposits increased by LBP 35B ($23M).

Total deposits (excluding demand deposits) fell by LBP 84B ($56M) over the same week, since deposits denominated in foreign currencies decreased by $101M and term and saving deposits rose by LBP 69B )$46M).

In turn, the broad money dollarization rate fell from 61.82% by May 17th to 61.806% by May 24th, 2018. According to the Central Bank, the overnight interbank rate steadied at 4% in January 2018.

In the Treasury Bills Auction held on June 7th, 2018, the Ministry of Finance (MoF) raised LBP 109 B ($72.5M), through the issuance of bills maturing in 6 months (6M), notes maturing in 24 months (2Y) and in 120 months (10Y).

The highest demand was achieved on the 2Y notes, which accounted for 47.22% of total subscriptions, while the 10Y notes and 6M bills accounted for the remaining shares of 45.80% and 6.98%, respectively.

The discount rates on the 6M stood at 4.87%, while the coupon rate on the notes maturing in 2Y and 10Y stood at 5.84% and 7.46% respectively. Existing maturities exceeded new subscriptions by LBP 196 B ($130M).

 

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