In the week ending January 31st 2019, Broad Money (M3) rose by a weekly LBP 276B ($183M) to stand at LBP 209,662B ($139B), adding 0.33% year-on-year (y-o-y) and decreasing by 1.16% since the start of the year.
In details, M1 expanded by LBP 504B ($334M) over the same week, to settle at LBP 10,369B ($6.88B). The increase is attributed to the LBP 363B ($240M) rise in demand deposits, and in the currency in circulation by LBP 141B ($93.53M).
Over the week, total deposits (excluding demand deposits) slumped by LBP 227.21B ($150M). This drop was driven by the term and saving deposits denominated in LBP by LBP 322B ($213M) while deposits denominated in foreign currencies rose by $63M.
As such, the rate of broad money dollarization marginally declined to 64.46% in the week ending Jan. 31st 2019, down from 64.50% in the week ending Jan. 24th 2019. In its turn, the average weekly interbank rate stood at 6% in the week of Jan. 28th 2019 down from 7% compared to the previous week.
In the treasury bills (T-Bills) auction held on January 31th 2019, the Ministry of Finance raised LBP 637.69B ($423.01M) through the issuance of bills maturing in 6 months (6M), as well as notes maturing in 3 years (3Y) and 7 years (7Y). The highest demand was achieved on bills maturing in 7Y, grasping a share of 70.1% of total subscriptions. Meanwhile, the 6M and 3Y bills accounted for the remaining stakes of 1.67% and 28.23%, respectively. The discount rates on the 6M bills stood at 5.68%, while the coupon rate on the notes maturing in 3Y and 7Y stood at 7.5% and 9%, respectively. New subscriptions were LBP 511.58B ($339.36M) below the existing maturities.