Broad Money (M3) increased by LBP 1,344B ($892B) in the week ending June 27, 2019 to reach LBP 210,760B ($139.81B), retreating by a yearly 1% and a 0.65% since the start of the year.
In details, M1 expanded by LBP 965B ($640B) over the same week, to settle at LBP 11,048B ($7.33B). The rise is attributed to increase in Currency in circulation and Demand deposits by LBP 469B ($311B) and LBP 496B ($329B), respectively.
Over the week, total deposits (excluding demand deposits) grew by LBP 378.83B ($251.30B), owing it to an increase in deposits denominated in foreign currencies by $302M while Term and saving deposits denominated in LBP declined by LBP 77B ($51B).
As such, the rate of broad money dollarization slightly retreated to 64.76% in the week ending June 27, 2019 down from 64.96% in the week ending June 20, 2019.
In the treasury bills (T-Bills) auction held on June 20 2019, the Ministry of Finance raised LBP 304.67B ($202.10B) through the issuance of bills maturing in 6 months (6M), and notes maturing in 3Years (3Y) and 7 Years (7Y). The highest demand was achieved on notes maturing in 3Y, grasping a share of 65.70% of total subscriptions. Meanwhile, the 6M and 7Y bills accounted for the remaining stakes of 4.76% and 29.54%, respectively. The discount rates on the 6M stood at 5.68%, while the coupon rates on the notes maturing in 3Y and 7Y stood at 7.5% and 9%, respectively.