Broad Money Supply M3 Grew by $167M by November 22, 2018
During the week ending November 22, Broad Money (M3) rose by a weekly LBP 251B ($167M) to stand at LBP 210,805B ($139.84M). On a yearly basis, M3 added 1.56% and marginally increased by 1.30% since the start of the year.
In fact, M1 expanded by LBP 19B ($12M) during the week of 16 to 22 November 2018, to stand at LBP 10,506B ($6.97M). This expansion was driven by an increase in demand deposits of LBP 118B ($78.28M) that outpaced the decrease in currency in circulation of LBP 99B ($65.67M).
Total Deposits (excluding demand deposits) progressed by LBP 232.54B ($154.26M) over the week. This progress was a result of the increase in deposits denominated in foreign currencies by $ 251M, which overshadowed the decrease of LBP145B ($96.19M) in Term and saving deposits in LBP over the week ending November 22.
As such, the rate of broad money dollarization grew from 61.64% to 63.22% this week. As for the overnight interbank rate, data from the central bank showed it steadied at 5% from May 2018 to October 2018.
In the Treasury Bills Auction held on November 29, 2018, the Ministry of Finance (MoF) raised LBP 154.306B ($102.36M), through the issuance of bills maturing in 3 months (3M) and 12M, in addition to notes maturing in 5 years (5Y). The highest demand was achieved on the notes maturing in 5Y which constituted 86.19% of total subscriptions. While the 12M bills and the 3M bills accounted for the remaining stakes of 9.26 % and 4.54% respectively.
The discount rate on the 3M and 12M bills stood at 4.39% and 5.08%, respectively, while the coupon rate on the notes maturing in 5Y stood at 6.74%.