Ministry of Finance (MoF) Raised LBP 373.89B through its Auction on the 22nd of September

During the week ending September 15, Broad Money M3 widened by LP 302B ($201M) from September 15 to reach LP 193,635B ($128B). As such, M3 recorded a 5.46% annual growth and a 3.77% rise since the start of the year.

On the other hand, M1 regressed LP 54B ($36M) over the same period to LP 9,456B ($6.27B). This drop can be attributed to the increase in demand deposits by LBP 35B ($23M) and the decrease in money in circulation by LBP 89B ($59M).

Total deposits (excluding demand deposits) increased by LP 356B ($236M) during the week, as deposits denominated in foreign currencies and term and saving deposits denominated in local currency registered respective growths of  $202M and LP 52B.

Over the above mentioned period, the broad money dollarization rate rose from 57.95% on September the 8th to 58.02% on September 15th. According to the Central Bank, the overnight interbank rate remained stable at 3% between June and July 2016.

In the Treasury Bills’ auction held on September 22, 2016, the Ministry of Finance (MoF) raised LBP 373.89B ($249M), through the issuance of bills maturing in 3M, 6M and 12M. The highest demand was achieved on the 12M bills, which held a 67.80% share of total subscriptions, while the 3M and 6M bills accounted for the remaining shares of 13.60% and 18.60%, respectively. The discount rates on the 3M bills stood at 4.39%, and the discount rates on the 6M and 12M bills registered 5.08% and 6.74%, respectively. New subscriptions exceeded existing maturities by LBP 270.16B ($180M).


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