Over the same period, M1 contracted by LBP 80B ($54M) to LBP 9,605B ($6B). Its decrease is mainly attributed to a LBP 141B ($94M) drop in currency in circulation and a LBP 61B ($40M) uptick in demand deposits.
Total deposits (excluding demand deposits) fell by LBP 444B ($295M) over the same period, as term and savings deposits denominated in local currency (LBP) regressed by LBP 203B ($135M) during the week, and deposits denominated in foreign currencies declined by $160M.
The Broad money dollarization rate marginally rose from 60.11% on September 21, 2017 to 60.14% on September 28, 2017. According to the Central Bank, the overnight interbank rate climbed to 4% between December 2016 and August 2017.
In the Treasury Bills Auction held on September 28, 2017, the Ministry of Finance (MoF) raised LBP 804B ($533M), through the issuance of bills maturing in 6 months (6M) and notes maturing in 24 months (24M) and 120 months (120M). The highest demand was achieved on the 24M and 120M notes which each accounted for 22% of total subscriptions while the bills maturing in 6M accounted for the remaining 56%. The discount rates on the 6M bills stood at 4.87% while the coupon rates on the notes maturing in 24 and 120 months stood at 5.84% and 7.46%, respectively. New subscriptions exceeded existing maturities by LBP 277B ($184M).