Ministry of Finance Raised $133M in its August 2nd T-Bills Auction

During the week ending on August 2, Broad Money (M3) increased by a weekly LBP 486B ($322M) to reach LBP 211,658B ($140B). On a yearly basis, M3 added 1.69% and rose by 1.71% since the start of the year.

M1 increased by LBP 553B ($367M) to reach LBP 11,309B ($7.5B) over the week due to an increase in currency in circulation of LBP 341 billion ($226M) and demand deposits of LBP 212 billion ($141M)

Total deposits (excluding demand deposits) fell by LBP 67B ($44M) over the same week, since deposits denominated in foreign currencies expanded by USD 73M while Term and saving deposits in LBP declined by LBP 177 billion ($117M) during the week.

In turn, the broad money dollarization rate slightly rose from 62.02% in the week ending in July 26th to 62.10% by the week ending August 2nd. According to the Central Bank, the overnight interbank rate was maintained at 5% from May 2018 to June 2018.

In the Treasury Bills Auction held on August 2th, 2018, the Ministry of Finance (MoF) raised LBP 201.78B ($133M), through the issuance of bills maturing in 6 months (6M) , in addition to notes maturing in 2Y and 10Y. The highest demand was achieved on the 2Y bills, which accounted for 37.32% of total subscriptions, while the 10Y bills and 6M notes accounted for the remaining shares of 37.24% and 25.44%, respectively. The discount rate on the 6M bills stood at 4.87%, while the coupon rates on the 2Y notes and 10Y notes stood at 5.84% and 7.46%, respectively. Existing maturities exceeded new subscriptions by LBP 164.74B ($109M).

 

 

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