During the week ending June 30th, broad Money M3 was augmented by LP 379B ($251.62M) to reach LP 190,428B ($126.32B). As such, M3 recorded a 4.89% annual growth and a 2.05% gain since the start of the year.
Similarly, M1 rose by LP 504B ($334.07M) over the same period. This can be explained by the increases in money in circulation and in demand deposits by respective values of LBP 140B ($92.87M) and LBP 364B ($241.46M).
Total deposits (excluding demand deposits) shrank by LP 124.29B ($82.45M) during the week, as deposits denominated in foreign currencies registered a $52M downtick, while deposits denominated in the local currency decreased by LBP 47B.
Over the above mentioned period, the broad money dollarization rate dipped from 58.02% on June 23rd to 57.87% on June 30th. According to the Central Bank, the overnight interbank dropped from 4% in February 2016 to 3% in March 2016.
In the TBs auction held on July 7th, 2016, the Ministry of Finance (MoF) raised LBP 408.90B ($271.24M), through the issuance of bills maturing in 6M and notes maturing in 24M and 120M. The highest demand was achieved on the 24M notes, which held a 50.18% share of total subscriptions, while the 120M notes and 6M bills accounted for the remaining shares of 49.21% and 0.61%, respectively. The discount rate on the 6M bills stood at 4.87%, while the coupon rates of the 24M and 120M notes registered 5.84% and 7.46%, respectively. New subscriptions lagged existing maturities by LBP 40.67B ($26.98M).