Ministry of Finance Raised $231M in its October 17, 2019 T-Bills Auction

According to the Lebanese Ministry of Finance (MoF), Broad Money (M3) dropped by LBP 374B ($248M) in the week ending November. 14, 2019 to reach LBP 205,790B ($136.51B), thereby recording a yearly downtick of 2.68% and a 2.99% decrease since the start of the year.

In details, M1 expanded by LBP 317B ($210M) over the same week, to reach LBP 12,970B ($8.60B). The increase came on the back of a rise in Currency in circulation by LBP 346B ($229M) and a decline in Demand deposits by LBP 29B ($19M).

As such, Total deposits (excluding demand deposits) retreated by LBP 691.41B ($458.66M), owing it to downtick in Term and saving deposits and Deposits denominated in foreign currencies by LBP 416B ($275 M) and $183M, respectively.

As such, the rate of broad money dollarization slightly decreased from 67.48% in the week ending in the week ending November 7, 2019 to 67.45% recorded in the week ending November 14, 2019.

In the treasury bills (T-Bills) auction held on October 17, 2019, the Ministry of Finance raised LBP 230.68B ($153M) through the issuance of bills maturing in 3 months  (3M), and notes maturing in 1 Year (1Y) and 5 Years (5Y) .The highest demand was achieved on notes maturing in 5Y, grasping a stake of 73.74% of the total subscriptions while the 6M bills and 1Y notes accounted for the remaining shares of 3.25% and 23.01%, respectively. The discount rates on the 6M stood at 5.23% while the coupon rate on the notes maturing in 1Y and 5Y stood at 6.10% and 8% respectively.



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