Ministry of Finance Raised $709M in its November 28 T-Bills Auction

Data by the Lebanese Ministry of Finance (MoF) showed Broad Money (M3) dropped by LBP 130B ($86M) in the week ending November 28 2019, to reach LBP 205,065B ($136B), thereby recording a yearly downtick of 3.05% and a 3.33% decrease since year start.

In details, M1 rose by LBP 1,461B ($969M) over the same week, to reach LBP 14,968B ($9.93B). The increase came on the back of the respective rises in Currency in circulation and in Demand deposits, by LBP 517B ($342M) and LBP 944B ($626M), respectively.

As such, Total deposits (excluding demand deposits) fell by LBP1,591B ($1B), owing it to an LBP1,466B ($973M). In fact, Term and saving deposits in LBP and Deposits denominated in foreign currencies dropped by LBP1,292B ($857M) and $198M, respectively.

As such, the rate of broad money dollarization slightly decreased from 67.81% in the week ending November 21 to 67.71% recorded in the week ending November 29  2019.

In the treasury bills (T-Bills) auction held on November 28 2019, the Ministry of Finance raised LBP 1,069B ($709M) through the issuance of bills maturing in 3 months  (3M) and 1 Year (1Y), and notes maturing in 5 Years (5Y). The highest demand was achieved on notes maturing in 5Y, grasping a share of 97.84% of the total subscriptions, while the 1Y notes and 3M bills accounted for the remaining shares of 1.41% and 0.75%, respectively. The discount rates on the 3M and 1Y stood at 5.23% and 6.10%, respectively, while the Coupon rates on the notes maturing in 5Y stood at 8% .

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