$196M Raised by the Ministry of Finance in its January 25th T-Bills Auction

During the week ending on January 18th, Broad Money (M3) grew by a weekly LBP 344B ($228M) to reach LBP 207,650B ($138B). On a yearly basis, M3 added 3.69% and slid by 0.21% since the start of the year.

M1 fell by LBP 296B ($196M) to LBP 9,808B ($6.5B) over the week. The decline came on the back of a LBP 165B ($109M) decrease in currency in circulation and a LBP 131B ($87M) contraction in demand deposits.

Total deposits (excluding demand deposits) climbed by LBP 641B ($425M) over the same week, owing it to Deposits denominated in foreign currencies widening by $90M while Term and savings deposits denominated in local currency (LBP) also added LBP 505B ($335M) during the week.

The Broad Money dollarization rate slipped from 61.92% to 61.88% by January 18th. 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 25, 2018, the Ministry of Finance (MoF) raised LBP 295B ($196M), through the issuance of bills maturing in 3 months (3M) and 1 year (1Y), as well as notes maturing in 5Y. The largest demand was achieved on the 5Y notes, which accounted for 51% of total subscriptions, while the 3M and the 1Y bills accounted for the remaining shares of 27.5% and 21.5%, respectively. The discount rate on the 3M and 1Y bills stood at 4.39% and 5.08%, respectively, while the coupon rate on the notes maturing in 5Y stood at 6.74%. The new subscriptions exceeded the existing maturities by LBP 232B ($154M).


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