The Ministry of Finance Raised LBP 340B in its August  29th T-Bills Auction

Broad Money (M3) declined by LBP 569B ($377B) in the week ending Aug. 22nd 2019, to stand at LBP 210,484B ($140B), thereby recording an annual downtick of 0.96% and a 0.78% decrease since the start of the year.

In details, M1 retreated by LBP 139B ($92M) over the same week, to settle at LBP 10,518B ($6.98B). The slippage came on the back of an LBP 214B ($142M) in currency in circulation which outweighed the

LBP 75B ($49.8M) growth registered in Demand deposits.

In turn, Total deposits (excluding demand deposits) fell by LBP 430B ($285M), owing it to a $22M drop in Deposits denominated in foreign currencies and an LBP396B ($263M) decline in Term and saving deposits as well.

As such, the rate of broad money dollarization slightly rose to 65.48% in the week ending Aug 22nd 2019, up from 65.32% recorded in the week ending Aug 15th 2019.

In the treasury bills (T-Bills) auction held on August 29th 2019, the Ministry of Finance raised LBP 340.14B ($225.6M) through the issuance of bills maturing 6M and notes maturing in 2 Years (2Y) and 10Y. The highest demand was achieved on bills maturing in 10Y, grasping a stake of 91.2% of total subscriptions. Meanwhile, the 6M bills and 2Y notes accounted for the remaining stakes of 2.9and 5.9%, respectively. The discount rate on the 6M bills stood at 5.68% while the coupon rates on the 2Y & 10Y bills stood at 7% and 10%, respectively. New subscriptions exceeded existing maturities by LBP 28.32B ($18.8M).

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