Ministry of Finance Raised $466M in its May 24th T-Bills Auction

During the week ending on May 17th, Broad Money (M3) decreased by a weekly LBP 158B ($105M) to reach LBP 210,494B ($140B). On a yearly basis, M3 added 2.89% and rose by 1.16% since the start of the year.

M1 declined by LBP 264B ($175M) to LBP 10,598B ($7.03B) over the week as currency in circulation decreased by a weekly LBP 157B ($104M) and as demand deposits decreased by LBP 107B ($71M).

Total deposits (excluding demand deposits) rose by LBP 106B ($70.1M) over the same week, since deposits denominated in foreign currencies increased by $3M and term ans saving deposits rose by LBP 101B )$67M).

In turn, the broad money dollarization rate rose from 61.77% by May 10th to 61.82% by May 17th, 2018. According to the Central Bank, the overnight interbank rate steadied at 4% in January 2018.

In the Treasury Bills Auction held on May 24th, 2018, the Ministry of Finance (MoF) raised LBP 703B ($466M), 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 7Y notes, which accounted for 42.71% of total subscriptions, while the 3Y notes and 6M bills accounted for the remaining shares of 42.7% and 14.59%, respectively.

The discount rates on the 6M bills stood at 4.87% while the coupon rate on the notes maturing in 3Y and 7Y stood at 6.50% and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 326B ($217M).


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