During the week ending April 13th, Broad Money M3 increased by a weekly LBP 343B ($228M) to reach LBP 202,588B ($134.39B). Moreover, M3 recorded a 7.71% annual increase and a 1.78% rise since the start of the year.
M1 fell by LBP 68B ($45M) over the same period to LBP 9,369B ($6.21B). The fall is mainly attributed to the increase in demand deposits by LBP 29B ($20M) and the decrease in currency in circulation by LBP 97B ($65M).
Total deposits (excluding demand deposits) increased by LBP 411B ($273M) during the week, as term and savings deposits denominated in local currency went up by LBP 96B ($64M) and deposits denominated in foreign currencies increased by $208M.
Over the above mentioned period, the broad money dollarization rate rose from 59.37% on April 6 to 59.42% on April 13. 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 20th, 2017, the Ministry of Finance (MoF) raised LBP 205B ($136M), through the issuance of bills maturing in 3 months (3M) and 12M and notes maturing in 60M. The highest demand was achieved on 60M notes, which accounted for 49.09% of total subscriptions, while the 3M bills and 12M bills accounted for the remaining shares of 12.33% and 38.58%, respectively. The discount rate on the 3M and 12M bills stood at 4.39% and 5.08%, respectively. Whereas the coupon rate on the 60M bills stood at 6.74%. Existing maturities exceeded new subscriptions by LBP 357B ($237M).