Broad Money M3 Stood at $139.6B by November 15, 2018

During the week ending November 15, Broad Money (M3) declined by a weekly LBP 573 B ($380M) to stand at LBP 210,55B ( $139.6M). As such, M3 declined by an annual 1.17% and by 1.18% since December 2017.

In fact, M1 Fell by LBP 180B ($119M) during the week, to stand at LBP 10,487B ($6.96B). The decrease in M1 was driven by a decline in currency in circulation of LBP 188B ($124.71M) that outpaced the increase in demand deposits of LBP 8B ($5.31M)

Total Deposits (excluding demand deposits) fell by LBP 393.6B($261M) over the week , on the back of the respective declines of $ 216M and LBP 68B ($45.1M) in deposits denominated in foreign currencies and in Term and saving deposits in LBP over the week ending November 15 .

As such, the rate of broad money dollarization grew from 61.24% to 63.21% this week. As for the overnight interbank rate, data from the central bank showed it steadied at 5% from August 2018 to September 2018.

In the Treasury Bills Auction held on November 15, 2018, the Ministry of Finance (MoF) raised LBP 255 B ($169M), through the issuance of bills maturing in 3 months (3M) and 12M, in addition to notes maturing in 5 years (5Y). The highest demand was achieved on the 3M Bills notes, which grasped 78.7% of total subscriptions, while the notes maturing in 5 years and 12M bills and accounted for the remaining stakes of 18.8% and 2.45% respectively. The discount rate on the 3M and 12M bills stood at 4.39% and 5.08%, respectively, while the coupon rate on the notes maturing in 5Y stood at 6.74%.



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