Money supply M3 Down to $136.93B by July 6, 2017

During the week of 30 June to 6 July 2017, Broad Money M3 decreased by a weekly of LBP 560B ($ 372M) to reach LBP 206,421B ($ 136.93B). Moreover, M3 recorded a growth rate of 8.31% on a year-on-year basis and a 3.71% increase since the start of the year.

M1 went up by LBP 41B ($ 27M) over the same period to LBP 9,939B ($6.59B). This increase is mainly due to a rise in currency in circulation by LBP 84B ($55.72M) and a decline in demand deposits by LBP 43B ($28.52M).

Total deposits (excluding demand deposits) decreased by LBP 600.979B ($398.66M) over the same period, as term and savings deposits denominated in local currency increased by LBP 5B ($3.32M) during the week, and deposits denominated in foreign currencies declined by $402M.

The Broad Money dollarization rate dropped from 59.925% on June 30th to 59.794% on July 6th. 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 July 13, 2017, the Ministry of Finance (MoF) raised LBP 291B ($193M), through the issuance of bills maturing in 3 months(M) and 12M and notes maturing in 60M. The highest demand was achieved on the 60M bills, which held a 44.73% share of total subscriptions, while the 3M and the 12 M bills accounted for the remaining shares of 24.38% and 30.84%, 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 158B ($105M).


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