Ministry of Finance Raised $538M in its October 10, T-Bills Auction

According to the Lebanese Ministry of Finance (MoF), Broad Money (M3) dropped by LBP 989B ($656M) in the week ending October. 10, 2019 to reach LBP 207,423B ($137.59B), thereby recording a yearly downtick of 2.41% and a 2.22% decrease since the start of the year.

In details, M1 retreated by LBP 141B ($94M) over the same week, to reach LBP 11,505B ($7.63B). The decrease came on the back of a decline in Demand deposits and Currency in circulation by LBP 95B ($63M) and LBP 46B ($30.51M), respectively.

As such, Total deposits (excluding demand deposits) retreated by LBP 847.51B ($561.87M), owing it to downtick in Term and saving deposits by LBP 848B ($562.52M) while Deposits denominated in foreign currencies progressed by $ 0.42M.

As such, the rate of broad money dollarization rose from 66.48% in the week ending in the week ending October 3, 2019 to 66.80% recorded in the week ending October 10, 2019.

In the treasury bills (T-Bills) auction held on October 10, 2019, the Ministry of Finance raised LBP 811.51B ($538.35M) 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 75.29% of the total subscriptions while the 6M bills and 3Y notes accounted for the remaining shares of 0.07% and 24.64%, 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.

 

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