Broad Money M3 Down by $226M in by October 4, 2018

During the week ending October 4, Broad Money (M3) declined by a weekly LBP 340B ($226M) to stand at LBP 212,185B ($140.75B). As such, M3 rose by an annual 1.37% and by 1.97% since December 2017.

In details, M1 increased by LBP 380B ($252M) during the week ending October 4, to reach LBP 11,371B ($7.54B). This came on the back of an increase in demand deposits and currency in circulation by LBP 378B ($251M) and LBP 2B ($1M), respectively.

Total deposits (excluding demand deposits) fell by LBP 720B ($477M) over the same period, owing it to a $142M fall in deposits denominated in foreign currencies. Meanwhile, Term and saving deposits in LBP declined by LBP 506B ($335M) over the week.

Accordingly, the broad money dollarization rate rose steadied at 62.83%. According to the Central Bank, the overnight interbank rate was maintained at 5% from July 2018 to August 2018.

In the Treasury Bills Auction held on September 20, 2018, the Ministry of Finance (MoF) raised LBP 103B ($68M), through the issuance of bills maturing in 3 months (3M) and 12 months (12M), and notes maturing in 5 years (5Y). The highest demand was achieved on the 12M bills, which accounted for 51.20% of total subscriptions, while the 3M bills and 5Y notes accounted for the remaining shares of 24.54% and 24.26%, respectively. The discount rate on the 3M bills and 6M bills stood at 4.39% and 5.08%, respectively, while the coupon rate on the notes maturing in 5Y at 6.74%.


Leave a Reply

Your email address will not be published. Required fields are marked *