Ministry of Finance (MoF) Raised LBP 756B through its Auction on the 10th of November

During the week ending November 3, Broad Money M3 rose by a weekly LBP 993B ($659M) to reach LP 194,260B ($129B). As such, M3 recorded a 5.55% annual increase and a 4.11% rise since the start of the year.

Moreover, M1 progressed by LBP 344B ($228M) over the same period to LBP 9,327B ($6B). This rise can be attributed to the respective growths of LP 343B ($228M) and LBP 1B in money in circulation and demand deposits.

Total deposits (excluding demand deposits) increased by LBP 649B ($431M) during the week, as deposits denominated in foreign currencies went up by $480M, while term and savings deposits denominated in local currency registered a fall of LBP 74B.

Over the above mentioned period, the broad money dollarization rate slightly rose from 58.23% on October 27th to 58.31% on November 3rd. According to the Central Bank, the overnight interbank rate remained stable at 3% between July and August 2016.

In the Treasury Bills’ auction held on November 10, 2016, the Ministry of Finance (MoF) raised LBP 756B ($501M), through the issuance of bills maturing in 6M and notes maturing in 36M and 84M. The highest demand was achieved on the 36M notes, which held a 57.11% share of total subscriptions, while the 6M bills and 84M notes accounted for the remaining shares of 8.07% and 34.82%, respectively. The discount rate on the 6M bills stood at 4.87%, and the coupon rates on the 36M and 84M notes recorded 6.50% and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 588B ($390M).






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