During the week ending March 30th, Broad Money M3 increased by a weekly LBP 304B ($202M) to reach LBP 202,290B ($134.19B). Moreover, M3 recorded a 7.80% annual increase and a 1.63% rise since the start of the year.
M1 rose by LBP 441B ($293M) over the same period to LBP 9,367B ($6.21B). The rise is mainly attributed to the respective increases in demand deposits by LBP 419B ($277.94M) and in currency in circulation by LBP 22B ($14.59M).
Total deposits (excluding demand deposits) decreased by LBP 137B ($91M) during the week, as term and savings deposits denominated in local currency went down by LBP 112B ($74M) and deposits denominated in foreign currencies decreased by $16M.
Over the above mentioned period, the broad money dollarization rate fell from 59.41% on March 23rd to 59.31% on March 30th. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and February 2017.
In the Treasury Bills auction held on April 13th, 2017, the Ministry of Finance (MoF) raised LBP 251.397B ($167M), through the issuance of bills maturing in 6 months (6M), notes maturing in 2 years, and 10 year T-bonds. The highest demand was achieved on the 2 years notes, which accounted for 49.87% of total subscriptions, while the 10 year bonds accounted for a share of 39.89%. The 6M bills accounted for the remaining 10.24% of total subscriptions. The discount rate on the 6M bills stood at 4.87%, whereas the coupon rate on the 2 Year bills and 10 year bonds stood at 5.84% and 7.46% respectively. Existing maturities exceeded new subscriptions by LBP 203.139B ($134.75M).