Ministry of Finance Raised $79M in its December 12 T-Bills Auction

Data by the Lebanese Ministry of Finance (MoF) showed Broad Money (M3) dropped by LBP 420B ($279M) in the week ending December 19 2019, to reach LBP 202,630B ($134B), thereby recording a yearly downtick of 4.61% and a 4.48% decrease since year start.

In details, M1 rose by LBP 593B ($394M) over the same week, to reach LBP 15,494B ($10.28B). The increase came on the back of the respective rises in Currency in circulation and in Demand deposits, by LBP 230B ($152M) and LBP 363B ($241M), respectively.

As such, Total deposits (excluding demand deposits) fell by LBP1 B ($672M). In fact, Term and saving deposits in LBP and Deposits denominated in foreign currencies dropped by LBP 929B ($616M) and $56M, respectively.

As such, the rate of broad money dollarization slightly increased from 68.62% in the week ending December 12 to 68.72% recorded in the week ending December 19  2019.

In the treasury bills (T-Bills) auction held on December 12 2019, the Ministry of Finance raised LBP 118,908M ($79M) 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 1Y, grasping a share of 50.46% of the total subscriptions, while the 5Y notes and 3M bills accounted for the remaining shares of 43.23% and 6.31%, 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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