The MoF’s T-Bills Auction on Sept. 05th 2019 Raised LBP 63.97B

According to the Lebanese Ministry of Finance (MoF), Broad Money (M3) added LBP 107B ($71) in the week ending Sept. 5th 2019 to reach LBP 210,835B ($140B), thereby recording a yearly downtick of 0.87% and a 0.61% decrease since the start of the year.

In details, M1 grew by LBP 319B ($212M) over the same week, to reach LBP 11,237B ($7.5B). The increase came on the back of an LBP 459B ($305M) in Currency in circulation, which outweighed the LBP 140B ($93M) decline registered in Demand deposits.

As such, Total deposits (excluding demand deposits) retreated by LBP 211.8B ($141M), owing it to a $242M uptick in Deposits denominated in foreign currencies. Meanwhile, Term and saving deposits fell by LBP577B ($383M).

As such, the rate of broad money dollarization rose from 65.48% in the week ending in the week ending Aug. 29th 2019 to 65.62% recorded in the week ending Sept. 5th 2019.

In the treasury bills (T-Bills) auction held on Sept. 05th 2019, the Ministry of Finance raised LBP 63.97B ($42.4M) through the issuance of notes maturing in 2 Years (2Y) and 5Y. The highest demand was achieved on notes maturing in 5Y, grasping a stake of 81.8% of the total subscriptions while the 2Y notes grasped a share of 18.2%. The coupon rates on the 2Y & 5Y bills stood at 6.5% and 8%, respectively. Lastly, the existing maturities exceeded the new subscriptions by LBP 23.81B ($15.8M).


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