In the week ending February 07th 2019, Broad Money (M3) fell by a weekly LBP 502B ($333M) to stand at LBP 209,160B ($138.75B), declining 0.04% year-on-year (y-o-y) and 1.40% since the start of the year.
In details, M1 contracted by LBP 342B ($226M) over the same week, to settle at LBP 10,027B ($6.65B). The decrease is attributed to the LBP 507B ($336M) decline in demand deposits, while the currency in circulation grew by LBP 165B ($109M).
Over the week, total deposits (excluding demand deposits) slumped by LBP 160.06B ($106M). This drop was driven by the decline in deposits denominated in foreign currencies by $303M while the term and saving deposits denominated in LBP rose by LBP 296B ($196M).
As such, the rate of broad money dollarization marginally declined to 64.40% in the week ending Feb. 07st 2019, down from 64.46% in the week ending Jan. 31st 2019. In its turn, the average weekly interbank rate stood at 12% in the week of Feb. 7th 2019 up from 6% compared to the previous week.
In the treasury bills (T-Bills) auction held on February 7th 2019, the Ministry of Finance raised LBP 294.75B ($195.52M) through the issuance of bills maturing in 3 months (6M), as well as notes maturing in 1 years (1Y) and 5 years (5Y). The highest demand was achieved on bills maturing in 5Y, grasping a share of 58.72% of total subscriptions. Meanwhile, the 3M and 1Y bills accounted for the remaining stakes of 3.07% and 38.22%, respectively. The discount rates on the 3M and 1(Y) bills stood at 5.23% and 6.10%, respectively while the coupon rate on the notes maturing in 5Y stood at 8% .