Broad Money M3 Stood at 139.07B by June 16, 2019

Broad Money (M3) added LBP 73B ($49B) in the week ending June 13, 2019 to reach LBP 209,653B ($139.07B), retreating by a yearly 1.25% and a 1.17% since the start of the year.

In details, M1 contracted by LBP 344B ($28.19B) over the same week, to settle at LBP 10,392B ($6.89B). The decrease is attributed to decrease in Currency in circulation and Demand deposits by LBP 190B ($126.03B) and LBP 154B ($102.15B), respectively.

Over the week, total deposits (excluding demand deposits) grew by LBP 416.90B ($276.55B), owing it to a $281M increase in deposits denominated in foreign currencies. Meanwhile, Term and saving deposits denominated in LBP dropped by LBP 7B (4.64M).

As such, the rate of broad money dollarization slightly increased to 64.85% in the week ending June 13, 2019 down from 64.67% in the week ending June 6, 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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