During the week ending November 17, Broad Money M3 rose by a weekly LBP 249B ($165M) to reach LBP 194,571B ($129.07B). As such, M3 recorded a 5.56% annual increase and a 4.27% rise since the start of the year.
In contrast, M1 contracted by LBP 220B ($146M) over the same period to LBP 8,895B ($5.9B). This contraction may be attributed to the respective decreases of LBP 129B ($86M) and LBP 91B ($60M) in demand deposits and money in circulation.
Total deposits (excluding demand deposits) increased by LBP 470B ($311M) during the week, as deposits denominated in foreign currencies went up by $200M, and term and savings deposits denominated in local currency registered an increase of LBP 167B.
Over the above mentioned period, the broad money dollarization rate rose from 58.35% on November 10th to 58.43% on November 17th. According to the Central Bank, the overnight interbank rate remained stable at 3% between August and September 2016.
In the Treasury Bills’ auction held on November 24, 2016, the Ministry of Finance (MoF) raised LBP 476B ($316M), through the issuance of bills maturing in 6M, and notes maturing in 24M and 120M. The highest demand was achieved on the 120M notes, which held a 50.61% share of total subscriptions, while the 6M bills and 24M notes accounted for the remaining shares of 12.75% and 36.64%, respectively. The discount rates on the 6M bills stood at 4.87% while the coupon rate on the 24M and 120M notes recorded 5.84% and 7.46% respectively. New subscriptions exceeded existing maturities by LBP 305B ($202M).