During the week ending September 29, Broad Money M3 grew by a weekly LP 670B ($445M) to reach LP 194,511B ($129B). As such, M3 recorded a 5.71% annual increase and a 4.24% rise since the start of the year.
Moreover, M1 progressed by LP 382B ($254M) over the same period to LP 9,518B ($6B). This fall can be attributed to the rise of LBP 405B($270M) in demand deposits and a drop of LBP 23B ($15M) in money in circulation.
Total deposits (excluding demand deposits) expanded by LP 288B ($191M) during the week, as deposits denominated in foreign currencies and term and saving deposits denominated in local currency registered respective growths of $151M and LP 60B.
Over the above mentioned period, the broad money dollarization rate fell from 58.11% on September 22nd to 58.03% on September 29th. 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 October 6, 2016, the Ministry of Finance (MoF) raised LBP 243B ($162M), through the issuance of bills maturing in 3M and 12M and notes maturing in 60M. The highest demand was achieved on the 60M notes, which held a 49.70% share of total subscriptions, while the 3M and 12M bills accounted for the remaining shares of 22.43% and 27.87%, respectively. The discount rates on the 3M and 12M bills stood at 4.39% and 5.08%, respectively, and the coupon rates on the 60M notes recorded 6.74%. New subscriptions exceeded existing maturities by LBP 15B ($10M).