Ministry of Finance Raised $133.8M in its July 5th T-Bills Auction

During the week ending on June 28th, Broad Money (M3) increased by a weekly LBP 888B ($589M) to reach LBP 211,750B ($140B). On a yearly basis, M3 added 2.22%  and rose by 1.76% since the start of the year.

M1 expanded by LBP 682B ($452M) to LBP 11,339B ($7B) over the week as demand deposits climbed by LBP 768B ($509M), which offset the weekly decline of LBP 86B ($57M) in currency in circulation.

Total deposits (excluding demand deposits) rose by LBP 206B ($137M) over the same week, since deposits denominated in foreign currencies progressed by $410M while term saving and deposits in LBP declined by LBP 412B )$273M).

In turn, the broad money dollarization rate remained almost stable since last week at 61.8% by the week ending June 28th. According to the Central Bank, the overnight interbank rate rose from 4% in April 2018 to 5% in May 2018.

In the Treasury Bills Auction held on July 5th , 2018, the Ministry of Finance (MoF) raised LBP 201.8B ($133.8M), through the issuance of bills maturing in 6 months (6M), in addition to notes maturing in 2 years (2Y) and 10Y. The highest demand was achieved on the 2Y and 10Y notes, each of which accounted for 37.3% of the total subscriptions, while the 6M bills grasped a share of 25.4% of the total. The discount rates on the 6M bills stood at 4.87%, while the coupon rates on the notes maturing in 2Y and 10Y stood at 5.84% and 7.46%, respectively. The existing maturities exceeded the new subscriptions by LBP 142B ($94M).


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