According to the Lebanese Ministry of Finance (MoF), Broad Money (M3) dropped by LBP 521B ($345.60M) in the week ending Sept. 19, 2019 to reach LBP 209,932B ($139.26B), thereby recording a yearly downtick of 1.40% and a 1.04% decrease since the start of the year.
In details, M1 declined by LBP 226B ($149.91M) over the same week, to reach LBP 10,811B ($7.17B). The decrease came on the back of a drop in Demand deposits and Currency in circulation by LBP 62B ($41.12M) and LBP 164B ($108.79M), respectively.
As such, Total deposits (excluding demand deposits) retreated by LBP 295.10B ($195.75M), owing it to a LBP 409B ($271.31M) downtick in Term and saving deposits. Meanwhile, Deposits denominated in foreign currencies rose by $ 75M.
As such, the rate of broad money dollarization rose from 65.80% in the week ending in the week ending Sept. 12, 2019 to 66.01% recorded in the week ending Sept. 19, 2019.
In the treasury bills (T-Bills) auction held on Sept. 12, 2019, the Ministry of Finance raised LBP 523.04B ($346.96M) through the issuance of bills maturing in 6 months (6M), and notes maturing in 3 Years (3Y) and 7 Years (7Y). The highest demand was achieved on notes maturing in 7Y, grasping a stake of 89% of the total subscriptions while the 3Y bills and 6M bills accounted for the remaining shares of 10.54% and 0.46%, respectively. The discount rates on the 6M stood at 5.68% while the coupon rate on the notes maturing in 3Y and 7Y stood at 7.50% and 9%, respectively.