The Ministry of Finance raised LBP 724.5B in its June 06th 2019 Auction

Broad Money (M3) added LBP 274B ($182B) in the week ending June 06, 2019 to reach LBP 209,580B ($139B), retreating by a yearly 1.16% and a 1.20% since the start of the year.

In details, M1 expanded by LBP 306B ($203B) over the same week, to settle at LBP 10,736B ($7B). The growth is attributed to the LBP 448B ($297M) increase in Currency in circulation, which outweighed the LBP 142B ($94M) decline in Demand deposits.

Over the week, total deposits (excluding demand deposits) fell by LBP 32B ($21M), owing it to a LBP 44B ($29M) downtick in Term and saving deposits denominated in LBP. In turn, Deposits denominated in foreign currencies recorded an $8M uptick.

As such, the rate of broad money dollarization slightly decreased to 64.67% in the week ending June 6, 2019 down from 64.75% in the week ending May 30, 2019.

In the treasury bills (T-Bills) auction held on June 6th 2019, the Ministry of Finance raised LBP 724.5B ($480.6M) through the issuance of bills maturing in 6 months (6M), and notes maturing in 2 Years (2Y) and in 10Y. The highest demand was achieved on notes maturing in 10Y, grasping a share of 83.66% of total subscriptions. Meanwhile, the 6M bills and 2Y notes accounted for the remaining stakes of 0.88% and 15.46%, respectively. The discount rates on the 6M bills stood at 5.68%, while the coupon rates on the notes maturing in 2Y and 10Y stood at 7% and 10%, respectively.

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