M3 Up to $140B by July 11th 2019

Broad Money (M3) increased by LBP 174B ($115B) in the week ending July 11, 2019 to reach LBP 210,806B ($139.84B), retreating by a yearly 0.92% and 0.62% since the start of the year.

In details, M1 contracted by LBP 42B ($27.86B) over the same week, to settle at LBP 10,571B ($7.01B). The decline came on the back of downticks in Currency in circulation by LBP 61B ($40B) while Demand deposits increased by LBP 19B ($12B).

Over the week, Total deposits (excluding demand deposits) grew by LBP 215.87B ($143B) owing it to a $198M rise in deposits denominated in foreign currencies, while Term and saving deposits denominated in LBP declined by LBP 82B ($54B).

As such, the rate of broad money dollarization slightly climbed to 65.04% in the week ending July 11, 2019 from 64.95% in the week ending July 4, 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 subscription. Meanwhile, 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.

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