In the week ending February 14th 2019, Broad Money (M3) fell by a weekly LBP 4B ($2.65M) to stand at LBP 209,156B ($138.74B), declining 0.17% year-on-year (y-o-y) and 1.40% since the start of the year.
In details, M1 contracted by LBP 208B ($138M) over the same week, to settle at LBP 9,819B ($6.51B). The decrease is attributed to the decline in demand deposits and currency in circulation by LBP 61B ($40M) and LBP 147B ($98M), respectively.
Over the week, total deposits (excluding demand deposits) grew by LBP 203.94B ($134M). This rise was driven by the increase in deposits denominated in foreign currencies and term and saving deposits denominated in LBP by $54M and LBP 123B ($81M), respectively.
As such, the rate of broad money dollarization marginally increased to 64.44% in the week ending Feb. 14th 2019, from 64.40% in the week ending Feb. 7st 2019. In its turn, the average weekly interbank rate stood at 10% in the week of Feb. 14th 2019 down from 12% compared to the previous week.
In the treasury bills (T-Bills) auction held on February 7th 2019, the Ministry of Finance raised LBP 294.75B ($195.52M) through the issuance of bills maturing in 6 months (6M), as well as notes maturing in 1 year (1Y) and 5 years (5Y). The highest demand was achieved on bills maturing in 5Y, grasping a share of 58.72% of total subscriptions. Meanwhile, the 3M and 1Y bills accounted for the remaining stakes of 3.07% and 38.22%, respectively. The discount rates on the 3M and 1(Y) bills stood at 5.23% and 6.10%, respectively while the coupon rate on the notes maturing in 5Y stood at 8% .