Ministry of Finance Raised $383M in its January 4th T-Bills Auction

 During the week ending on December 28th, Broad Money (M3) climbed by a weekly LBP 1,294B ($859M) to reach LBP 208,090B ($138B). On a yearly basis, M3 grew by 4.15% and by 4.55% since the start of the year.

M1 rose by LBP 252B ($167M) to LBP 10,405B ($7B) over the week. The increase is attributed to the LBP 199B ($132M) and LBP 53B ($35M) upticks respectively recorded for Currency in circulation and Demand deposits.

Total deposits (excluding demand deposits) climbed by LBP 1,042B ($691M) over the same period, as Term and savings deposits denominated in local currency (LBP) grew by LBP 145B ($96M) during the week, and Deposits denominated in foreign currencies climbed by $595M.

The Broad Money dollarization rate marginally rose from 62.03% on December 21, 2017 to 62.07% on December 28, 2017. According to the Central Bank, the overnight interbank rate steadied at 4% for the months of September and October 2017.

In the Treasury Bills Auction held on January 04, 2018, the Ministry of Finance (MoF) raised LBP 578B ($383M), through the issuance of bills maturing in 6 months (6M), and notes maturing in 3 years (3Y) and 7Y. The highest demand was achieved on the 3Y notes, which accounted for 51.2% of total subscriptions, while the 6M bills and the 7Y notes accounted for the remaining shares of 10.7% and 38.1%, respectively. The discount rate on the 6M bills stood at 4.87%, while the coupon rate on the notes maturing in 3Y and 7Y stood at 6.5%, and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 371B ($246M).


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