The Ministry of Finance Raised $116.7M in its Feb. 27th 2020 T-Bills Auction

BDL’s data on money supply revealed that Broad Money (M3) declined by LBP 598B ($397M) in the week ending March 5, 2020 to settle at LBP 196,336B ($130B), thereby recorded a yearly decrease of 6.91% and a decline of 3.04% year-to-date (YTD).

In details, money supply M1, inclusive of currency in circulation and demand deposits in LBP, increased by LBP 504B ($334M) over the same week, reaching LBP 19,651B ($13B). The M1 uptick is attributed to the rise in Currency in circulation by LBP 644B ($427M) while demand deposits declined by LBP 140B ($93M).

In their turn, Total deposits (excluding demand deposits) fell by LBP 1,102B ($731M). In fact, Term and saving deposits in LBP as well as Deposits denominated in foreign currencies dropped by LBP 856B ($568M) and $163M, respectively.

As such, the rate of broad money dollarization incrementally rose from 69.76% in the week ending February 27, 2020, to 69.85% in the week ending March 5th 2020.

In its treasury bills (T-Bills) auction dating February 27th 2020, the Ministry of Finance (MoF) raised LBP 176B ($117M) through the issuance of T-bills maturing in 6 months (6M) and notes maturing in 3 Years (3Y) and 7Y. The highest demand was recorded on the 7Y notes which grasped 61.74% of total subscriptions, while the 3Y notes and 6M bills accounted for the remaining shares of 34.11% and 3.95%, respectively. In details, the yields on the 6M bills stood at 5.85%, while the coupon rates on the 3Y notes and 7Y notes stood at 7.50% and 9%, respectively.

Source: BDL; MoF

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