Broad Money (M3) increased by LBP 428B ($284B) in the week ending May 30, 2019 to stand at LBP 209,305B ($138.84B), declining by an annual 1.16% and by a yearly 1.33% since the start of the year.
In details, M1 expanded by LBP 367B ($243B) over the same week, to settle at LBP 10,430B ($6.92B). The increase is attributed to the rise in demand deposits and currency in circulation by LBP 366B ($242B) and LBP 1B ($663M), respectively.
Over the week, total deposits (excluding demand deposits) grew by LBP 61.26B ($41.64B), driven by a 114M uptick in deposits denominated in foreign currencies. In their turn, term and saving deposits denominated in LBP fell by LBP 111B ($73B).
As such, the rate of broad money dollarization decreased to 64.75% in the week ending May 30, 2019 down from 64.80% in the week ending May 23, 2019.
In the treasury bills (T-Bills) auction held on May 2 2019, the Ministry of Finance raised LBP 69.2B ($45.9B) through the issuance of bills maturing in 3months (3M) as well as notes maturing in 1 Years (1Y) and in 5 years (5Y). The highest demand was achieved on bills maturing in 5Y, grasping a share of 79.48% of total subscriptions. Meanwhile, the 3M and 1Y bills accounted for the remaining stakes of 8.67% and 11.85%, respectively. The discount rates on the 3M and 1Y bills stood at 5.23% and 6.10% while the coupon rate on the notes maturing in 5Y stood at 8%.