Money supply M3 Up to $136.78B by June 22, 2017

During the week of 15 to 22 June, Broad Money M3 increased by a weekly of LBP 798B ($529M) to reach LBP 206,200B ($136.78B). In addition, M3 recorded a growth rate of 8.40% on a year -on -year basis and a 3.60% increase since the start of the year.

M1 rose by LBP 368B ($244M) over the same period to reach a value of LBP 9,761B ($6.47B). The increase is mainly attributed to an increase in demand deposits by  LBP 374B ($248.09M) and to a slight decrease in currency in circulation by LBP 6B ($3.98M).

Total deposits (excluding demand deposits) increased by LBP 430.46B ($ 285.55M) over the same period, as term and savings deposits denominated in local currency rose by LBP 127B ($ 84.25M) during the week, and deposits denominated in foreign currencies increased by $201M.

The Broad Money dollarization rate dropped from 59.97% on June 15th to 59.89% on June 22nd. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and April 2017.

In the Treasury Bills auction held on June 15, 2017, the Ministry of Finance (MoF) raised LBP 129B ($86M), through the issuance of bills maturing in 3 months(M) and 12M and notes maturing in 60M. The highest demand was achieved on the 12M bills, which held a 41.04% share of total subscriptions, while the 3M bills and the 60M notes accounted for the remaining shares of 19.60% and 39.36%, respectively. The discount rate on the 3M bills stood at 4.39% and at 5.08% on the 12M bills while the yield on the 60M notes registered 6.74%. Existing maturities exceeded new subscriptions by LBP 55B ($36M).


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