Broad Money (M3) increased by LBP 128B ($85M) in the week ending July 04, 2019 to reach LBP 210,632B ($139.7B), retreating by a yearly 1.07% and 0.71% since the start of the year.
In details, M1 contracted by LBP 434B ($288B) over the same week, to settle at LBP 10,614B ($7.04B). The decline came on the back of downticks in Demand deposits and Currency in circulation, by LBP 405B ($269M) and LBP 29B ($19M), respectively.
Over the week, Total deposits (excluding demand deposits) grew by LBP 306B ($203M) owing it to a $212M rise in deposits denominated in foreign currencies, while Term and saving deposits denominated in LBP declined by LBP 13B ($8.6M).
As such, the rate of broad money dollarization slightly climbed to 64.94% in the week ending July 04, 2019 from 64.75% in the week ending June 27, 2019.
In the treasury bills (T-Bills) auction held on July 04th 2019, the Ministry of Finance raised LBP 295.8B ($196.2M) through the issuance of bills maturing in 6 months (6M), and notes maturing in 2 Years (2Y) and 10 Years (10Y). The highest demand was achieved on notes maturing in 10Y, grasping a share of 65.8% of total subscriptions while the 6M bills and 2Y notes accounted for the remaining stakes of 3.07% and 31.2%, respectively. The discount rate 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.