Ministry of Finance Raised $101M in its July 19th T-Bills Auction

During the week ending on July 12th, Broad Money (M3) fell by a weekly LBP 52B ($34M) to reach LBP 211,369B ($140.21B). On a yearly basis, M3 added 1.82% and rose by 1.58% since the start of the year.

M1 decreased by LBP 207B ($137M) to reach LBP 11,133B ($7.39B) over the week due to a decrease in currency in circulation of LBP 123 billion ($81.59M) and in demand deposits of LBP 84 billion ($55.72M)

Total deposits (excluding demand deposits) increased by LBP 155.35B ($103.05M) over the same week, since deposits denominated in foreign currencies expanded by USD 203 million and Term and saving deposits in LBP declined by LBP 151 billion ($100.17M) during the week.

In turn, the broad money dollarization rate slightly rose from 61.71% in the week ending in July 5th to 61.87% by the week ending July 12th. 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 19th, 2018, the Ministry of Finance (MoF) raised LBP 152.261B ($101M),through the issuance of bills maturing in 6 months (6M) and 3 year (3Y), in addition to notes maturing in 7Y.

The highest demand was achieved on the 6M bills, which accounted for 33.75% of total subscriptions, while the 3Y bills and 7Y notes accounted for the remaining shares of 33.34% and 32.91%, respectively. The discount rates on the 6M stood at 4.87% while the coupon rate on the notes maturing 3Y notes and 7Y notes stood at 6.50% and 7.08%, respectively. Existing maturities exceeded New subscriptions by LBP 239.150B ($158.64M).

 

 

 

 

 

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