During the week of 8 to 14 September 2017, Broad Money M3 dropped by a weekly LBP 359B ($238M) to reach LBP 208,757B ($138.48B). In addition, M3 recorded growth rates of 7.32% on a year-on-year basis and 4.80% since the start of the year.
Over the same period, M1 went down by LBP 207B ($137M) to LBP 9,806B ($6.50B). This decrease is mainly due to a LBP 173B ($115M) fall in currency in circulation and a LBP 34B ($22M) decline in demand deposits.
Total deposits (excluding demand deposits) fell by LBP 152B ($100M) over the same period, as term and savings deposits denominated in local currency decreased by LBP 10B ($6M) during the week, and deposits denominated in foreign currencies dropped by $94M.
The Broad Money dollarization rate dropped from 60.05% on the 7th of September to 60.08% on September 14 2017. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and June 2017.
In the Treasury Bills auction held on September 21, 2017, The Ministry of Finance (MoF) raised LBP 372B ($247M), through the issuance of bills maturing in 3 months (3M), and 12 months (12M) in addition to notes maturing in 60 months (60M). The highest demand was achieved on the 3M bills, which grasped a 40.81% stake of total subscriptions, while the 12M bills and 60M notes accounted for the remaining shares of 24.15% and 35.04%, respectively. The discount rates on the 3M and 12M bills were 4.39% and 5.08%, respectively, while the coupon rate on the 60M notes stood at 6.74%. New subscriptions exceeded existing maturities by LBP 291B ($192M).