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

During the week ending on July 19th, Broad Money (M3) fell by a weekly LBP 223B ($148M) to reach LBP 211,146B ($140.06B). On a yearly basis, M3 added 1.63% and rose by 1.47% since the start of the year.

M1 decreased by LBP 268B ($177M) to reach LBP 10,866B ($7.21B) over the week due to a decrease in currency in circulation of LBP 171 billion ($113.41M) and in demand deposits of LBP 97 billion ($64.34M)

Total deposits (excluding demand deposits) increased by LBP 44.50B ($29.52M) over the same week, since deposits denominated in foreign currencies expanded by USD 116 million and Term and saving deposits in LBP declined by LBP 130 billion ($86.23M) during the week.

In turn, the broad money dollarization rate slightly rose from 61.87% in the week ending in July 12th to 62.02% by the week ending July 19th. 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 26th, 2018, the Ministry of Finance (MoF) raised LBP 153.65B ($101.95M),through the issuance of bills maturing in 3 months (3M) and 1 year (1Y), in addition to notes maturing in 5Y.

The highest demand was achieved on the 1Y bills, which accounted for 34.30% of total subscriptions, while the 3M bills and 5Y notes accounted for the remaining shares of 33.69% and 32.65%, respectively. The discount rates on the 3M stood at 4.39% while the coupon rate on the 1Y notes and 5Y notes stood at 5.35% and 6.74%, respectively. New subscriptions exceeded existing maturities by LBP 48.75B ($32.33M).

 

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