During the week ending April 30th 2015, broad Money M3 surged by LP 1,594B ($1.06B), recording its largest weekly increase in more than three and a half years, to reach LP 179,950B ($119.37B) with a 5.24% year-on-year growth and a 1.4% year-to-date uptick. This was partly due to more than $600M expansion in foreign deposits, which may result in Lebanon registering a Balance of Payments surplus in April, for the first time this year. Similarly, M1 progressed by LP 494B ($327.99 M) due the LP 191B ($126.72M) and LP 303B ($201M) increases in money in circulation and demand deposits, respectively.
Total deposits (excluding demand deposits) went up by LP 1,099.24B ($729.18M), given the expansion of deposits denominated in foreign currencies by $603M and in term and saving deposits in domestic currency by LP 191B. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 58.28% to 58.27%. According to the Central Bank, the overnight interbank rate remained constant at 2.75% at the end of March 2015.
In the TBs auction held on the 7th of May 2015, the Ministry of Finance raised LP 158B ($104.81M), through the issuance of bills maturing in 3M and 1Y, and 5Y notes. The highest demand was achieved on the 5Y notes, with an 84.81% share of total subscriptions. Meanwhile,the 3M and 1Y bills captured respective proportions of 3.80% and 11.39%. In addition, the 3M and 1Y bills yielded 4.39% and 5.08%, respectively, while the coupon rate of the 5Y notes stood at 6.74%.