Ministry of Finance Raised $333M in its January 18th T-Bills Auction

During the week ending on January 11th, Broad Money (M3) decreased by a weekly LBP 639B ($424M) to reach LBP 207,307B ($138B). On a yearly basis, M3 grew by 3.53% and dropped by 0.38% since the start of the year.

M1 declined by LBP 182B ($121M) to LBP 10,105B ($7B) over the week. The drop is attributed to the LBP 53B ($35M) and LBP 129B ($86M) decreases in demand deposits and currency in circulation, respectively.

Total deposits (excluding demand deposits) fell by LBP 457B ($303M) over the same period, as Term and savings deposits denominated in local currency (LBP) grew by LBP 240B ($159M) during the week, while Deposits denominated in foreign currencies dropped by $462M.

The Broad Money dollarization rate fell from 62.07% to 61.92% 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 18, 2017, the Ministry of Finance (MoF) raised LBP 502B ($333M), through the issuance of bills maturing in 6 months (6M), and notes maturing in 24 month (24M) and 120M. The highest demand was achieved on the 24M notes, which accounted for 52.78% of total subscriptions, while the 6M bills and the 120M notes accounted for the remaining shares of 12.28% and 34.94%, respectively. The discount rate on the 6M bills stood at 4.87%, while the coupon rate on the notes maturing in 24M and 120M stood at 5.84%, and 7.46%, respectively. New subscriptions exceeded existing maturities by LBP 383B ($254M).

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