Ministry of Finance Raised $120M in its Sept. 19 T-Bills Auction

According to the Lebanese Ministry of Finance (MoF), Broad Money (M3) dropped by LBP 1,032B ($931M) in the week ending Sept. 26, 2019 to reach LBP 208,529B ($138.33B), thereby recording a yearly downtick of 2.11% and a 1.70% decrease since the start of the year.

In details, M1 rose by LBP 149B ($99M) over the same week, to reach LBP 10,860B ($7.27B). The increase came on the back of a rise in Demand deposits LBP 197B ($130M) while Currency in circulation dropped by LBP 48 B ($31.84M).

As such, Total deposits (excluding demand deposits) retreated by LBP 1,552B ($1.02B), owing it to downtick in Term and saving deposits and Deposits denominated in foreign currencies by a LBP 1,181B ($783.41M) and $ 246M.

As such, the rate of broad money dollarization rose from 66.01% in the week ending in the week ending Sept. 19, 2019 to 66.28% recorded in the week ending Sept. 26, 2019.

In the treasury bills (T-Bills) auction held on Sept. 19, 2019, the Ministry of Finance raised LBP 180,412M ($119.67M) through the issuance of bills maturing in 1 year (1Y), and notes maturing in 5 Years (5Y). The highest demand was achieved on notes maturing in 5Y, grasping a stake of 96.20% of the total subscriptions while the 1Y bills accounted for the remaining shares of 3.80%. The discount rates on the 1Y stood at 6.10% while the coupon rate on the notes maturing in 5Y stood at 8%.



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