Ministry of Finance (MoF) Raises LBP 126.33B  in its August  22, T-Bills Auction

Broad Money (M3) increased by LBP 336B ($223M) in the week ending Aug. 15, 2019 to stand at LBP 211,053B ($140B), retreating by a yearly 0.67% and 0.51% since the start of the year.

In details, M1 grew by LBP 113B ($75M) over the same week, to settle at LBP 10,657B ($7.07B). The rise came on the back of a increase in Demand deposits by LBP 144B ($95.52M), which outweighed the LBP 30B ($19.9M) downtick registered in Currency in circulation over the week.

In turn, Total deposits (excluding demand deposits) grew by LBP 222.93B ($147.88M), owing it to a $226M increase in Deposits denominated in foreign currencies while Term and saving deposits denominated in LBP  retreated by LBP 118B ($78.28M).

As such, the rate of broad money dollarization slightly climbed to 65.32% in the week ending Aug 15, 2019 from 65.26% in the week ending Aug 8, 2019.

In the treasury bills (T-Bills) auction held on August 22 2019, the Ministry of Finance raised LBP 126.33B ($83.80B) through the issuance of bills maturing 12M and notes maturing in 5 Years (5Y). The highest demand was achieved on bills maturing in 12M, grasping a share of 50.92% of total subscription. Meanwhile, the 5Y notes accounted for the remaining stakes of 49.08%. The discount rate on the 12M bills stood at 6.10%. Whereas the coupon rate on the 5Y bills stood at 8%.

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