Ministry of Finance Raised $86M in June 8th T-bills Auction

During the week ending on the 8th of June 2017, Broad Money M3 rose by a weekly LBP 296B ($197M) to reach LBP 205,070B ($136B). Moreover, M3 recorded an 8.09% annual increase and a 3.03% rise since the start of the year.

M1 dropped by LBP 192B ($127M) over the same period to LBP 9,509B ($6.31B). The drop is mainly attributed to a drop in demand deposits by LBP 270B ($179M) and to the increase currency in circulation by LBP 78B ($52M).

Total deposits (excluding demand deposits) rose by LBP 488B ($324M) over the same period, as term and savings deposits denominated in local currency fell by LBP 5B ($3M) during the week, and deposits denominated in foreign currencies increased by $327M.

Over the above mentioned period, the broad money dollarization rate rose from 59.756% on June 1st to 59.911% by June 8th. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and March 2017.

In the Treasury Bills auction held on June 8, 2017, the Ministry of Finance (MoF) raised LBP 129B ($86M), through the issuance of bills maturing in 3 months(M) and 12M and notes maturing in 60M. The highest demand was achieved on the 12M bills, which held a 41.04% share of total subscriptions, while the 3M bills and the 60M notes accounted for the remaining shares of 19.60% and 39.36%, respectively. The discount rate on the 3M bills stood at 4.39% and at 5.08% on the 12M bills while the yield on the 60M notes registered 6.74%. Existing maturities exceeded new subscriptions by LBP 55B ($36M).

 

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