Ministry of Finance Raised $101.5M in its July 12th T-Bills Auction

During the week ending on July 5th, Broad Money (M3) fell by a weekly LBP 329B ($218M) to reach LBP 211,421B ($140B). On a yearly basis, M3 added 1.93% and rose by 1.60% since the start of the year.

M1 expanded by LBP 2B ($1.3M) to LBP 11,340B ($7B) over the week as demand deposits fell by LBP 353B ($234.2M), while the currency in circulation witnessed a weekly rise of LBP 355B ($235.5M) in currency in circulation.

Total deposits (excluding demand deposits) fell by LBP 331B ($220M) over the same week, since deposits denominated in foreign currencies fell by $312M while term saving and deposits in LBP rose by LBP 139B )$92M).

In turn, the broad money dollarization rate slightly fell from 61.84% to 61.71% by the week ending July 5th. According to the Central Bank, the overnight interbank rate rose from 4% in April 2018 to 5% in May 2018.

In the Treasury Bills Auction held on July 12th, 2018, the Ministry of Finance (MoF) raised LBP 153.53B ($101.5M), through the issuance of bills maturing in 3 months (3M) and 1 year (1Y), in addition to notes maturing in 5Y.

The highest demand was achieved on the 1Y bills, which accounted for 34.34% of total subscriptions, while the 3M bills and 5Y notes accounted for the remaining shares of 32.96% and 32.70%, respectively. The discount rates 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%. New subscriptions exceeded existing maturities by LBP 48B ($35M).


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