Broad Money (M3) decreased by LBP 237B ($157B) in the week ending June 20, 2019 to reach LBP 209,416B ($138.92B), retreating by a yearly 1.50% and a 1.28% since the start of the year.
In details, M1 contracted by LBP 310B ($206B) over the same week, to settle at LBP 10,082B ($6.69B). The decrease is attributed to decrease in Currency in circulation and Demand deposits by LBP 249B ($165.17B) and LBP 61B ($40.46B), respectively.
Over the week, total deposits (excluding demand deposits) grew by LBP 73.28B ($48.61B), owing it to an increase in deposits denominated in foreign currencies and Term and saving deposits denominated in LBP by $48M and LBP 1B (663.35M).
As such, the rate of broad money dollarization slightly increased to 64.96% in the week ending June 20, 2019 down from 64.85% in the week ending June 13, 2019.
In the treasury bills (T-Bills) auction held on June 13 2019, the Ministry of Finance raised LBP 69.39B ($46.03B) through the issuance of bills maturing in 3 months (3M) and 1 year (1Y), and notes maturing in 5 Years (5Y). The highest demand was achieved on notes maturing in 5Y, grasping a share of 76.80% of total subscriptions. Meanwhile, the 3M and 1Y bills accounted for the remaining stakes of 7.22% and 15.99%, respectively. The discount rates on the 3M and 1Y bills stood at 5.23%, and 6.10% while the coupon rates on the notes maturing in 5Y stood at 8% .