During the week ending February 2, Broad Money M3 increased by a weekly LBP218B ($144M) to reach LBP 200,276B ($133B). Moreover, M3 recorded a 7.72% annual increase and a 0.62% rise since the start of the year.
M1 decreased by LBP 168B ($112M) over the same period to LBP 9,319B ($6.18B). The drop is mainly attributed to the respective decreases of LBP 151B ($100M) and LBP 17B ($11M) in money in circulation and in demand deposits.
Total deposits (excluding demand deposits) rose by LBP386B ($256M) during the week, as term and savings deposits denominated in local currency and deposits denominated in foreign currencies registered respective growths of LBP 185B ($123M) and $134M.
Over the above mentioned period, the broad money dollarization rate slightly dropped from 59.15% to stand at 59.03% on February 2. According to the Central Bank, the overnight interbank rate remained stable at 3% between October and November 2016.
In the Treasury Bills auction held on February 9th, 2017, the Ministry of Finance (MoF) raised LBP 295B ($196M), through the issuance of bills maturing in 3 months (3M) and 12M and a note maturing in 60M. The highest demand was achieved on the 60M note, which held a 37.94% share of total subscriptions, while the 3M and 12M bills accounted for the remaining shares of 35% and 27.06%, respectively. The discount rate on the 3M and 12M bills stood at 4.39% and 5.08% respectively while the coupon rate on the 60M note registered 6.74%. New subscriptions exceeded existing maturities by LBP 74B ($49M).