During the week ending on January 4th, Broad Money (M3) decreased by a weekly LBP 146B ($97M) to reach LBP 207,944B ($138B). On a yearly basis, M3 grew by 3.86% and dropped by 0.07% since the start of the year.
M1 declined by LBP 118B ($78M) to LBP 10,287B ($7B) over the week. The increase is attributed to the LBP 121B ($80M) decrease in demand deposits and the LBP 3B ($2M) uptick recorded for Currency in circulation.
Total deposits (excluding demand deposits) fell by LBP 27B ($18M) over the same period, as Term and savings deposits denominated in local currency (LBP) grew by LBP 67B ($44M) during the week, while Deposits denominated in foreign currencies dropped by $62M.
The Broad Money dollarization rate steadied at 62.07% during the week. 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 11, 2018, the Ministry of Finance (MoF) raised LBP 477B ($317M), through the issuance of bills maturing in 3 months (3M) and 12 months (12M), and notes maturing in 60 months (60M). The highest demand was achieved on the 12M bills, which accounted for 51.52% of total subscriptions, while the 3M bills and the 60M notes accounted for the remaining shares of 16.97% and 31.51%, respectively. The discount rates on the 3M and 6M bills stood at 4.39% and 5.35%, respectively, while the coupon rate on the notes maturing in 60M stood at 6.74%. New subscriptions exceeded existing maturities by LBP 79B ($52M).