During the week ending on June 14th, Broad Money (M3) increased by a weekly LBP 395B ($262M) to reach LBP 211,629B ($140B). On a yearly basis, M3 added 2.65% y-o-y and rose by 1.70% since the start of the year.
M1 expanded by LBP 23B ($16M) to LBP 10,920B ($7B) over the week as demand deposits climbed by LBP 55B ($36M), which offset the weekly decline of LBP 32B ($21M) in currency in circulation.
Total deposits (excluding demand deposits) rose by LBP 371B ($246M) over the same week, since deposits denominated in foreign currencies progressed by $175M and term and saving deposits in LBP climbed up by LBP 107B )$71M).
In turn, the broad money dollarization rate by June 14th remained unchanged from last week’s 61.7%, 2018. According to the Central Bank, the overnight interbank rate rose from 4% in February 2018 to 4.3% in March 2018.
In the Treasury Bills Auction held on June 21st, 2018, the Ministry of Finance (MoF) raised LBP 121B ($80M), through the issuance of bills maturing in 6 months (6M), in addition to notes maturing in 3 years (3Y) and 7Y.
The highest demand was achieved on the 3Y and 7Y notes, each of which accounted for 41.5% of the total subscriptions, while the 6M bills grasped a share of 17% of the total.
The discount rates on the 6M bills stood at 4.87%, while the coupon rates on the notes maturing in 3Y and 7Y stood at 6.5% and 7.08%, respectively. The existing maturities exceeded the new subscriptions by LBP 253B ($168M).