M3 Stood at $140B by July 25 2019

Broad Money (M3) decreased by LBP 21B ($14B) in the week ending July 25, 2019 to reach LBP 210,673B ($139.75B), retreating by a yearly 0.84% and 0.69% since the start of the year.

In details, M1 expanded by LBP 106B ($70B) over the same week, to settle at LBP 10,320B ($6.85B). The increase came on the back of rise in Demand deposits by LBP 118B ($78.28B) while Currency in circulation declined by LBP 12B ($7.96B).

Over the week, Total deposits (excluding demand deposits) dropped by LBP 126.90B ($84.18B) owing it to a $198M decline in Term and saving deposits denominated in LBP by 261B ($173.13B) while deposits denominated in foreign currencies, progressed by $89M.

As such, the rate of broad money dollarization slightly climbed to 65.26% in the week ending July 25, 2019 from 69.15% in the week ending July 18, 2019.

In the treasury bills (T-Bills) auction held on August 1 2019, the Ministry of Finance raised LBP 434B ($287.89B) 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 59.91% of total subscription. Meanwhile, the 6M bills and 2Y notes accounted for the remaining stakes of 1.61% and 38.48%, 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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