In the week ending April 4th 2019, Broad Money (M3) decreased by a weekly LBP 111B ($73.63M) to stand at LBP 210,518B ($139.65B), declining 0.02% year-on-year (y-o-y) and 0.76% since the start of the year.
In details, M1 expanded by LBP 144B ($95.52) over the same week, to settle at LBP 10,092B ($6.69B). The rise is attributed to the increase in currency in circulation by LBP 390B ($258.70M) while demand deposits declined by LBP 246B ($163.18M).
Over the week, total deposits (excluding demand deposits) dropped by LBP 255.20B ($169.29M). This decline was driven by the decrease in deposits denominated in foreign currencies by $176M while term and saving deposits denominated in LBP rose by LBP 10B ($6.63M).
As such, the rate of broad money dollarization marginally decreased to 64.14% in the week ending April 4th 2019, from 64.23% in the week ending March. 28th 2019. In its turn, the average weekly interbank rate decreased to 4% in the week of April 4th 2019 compared to 5% the previous week.
In the treasury bills (T-Bills) auction held on March 28th 2019, the Ministry of Finance raised LBP 1.26B ($806.87M) through the issuance of bills maturing in 6 months (6M) as well as notes maturing in 3 Years (3Y) and in 7 years (7Y). The highest demand was achieved on bills maturing in 7Y, grasping a share of 86.24% of total subscriptions. Meanwhile, the 6M and 3Y bills accounted for the remaining stakes of 13.15% and 0.60%, 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 7.50% and 9%, respectively.