According to BDL’s data, Broad Money (M3) fell by a weekly LBP 276B ($183M) in the week ending April 23 to LBP 194,233B ($129B), thereby recording a yearly decline of 8.09% and a decrease of 4.08% since year-start (YTD).
In details, M1 expanded by LBP 160B ($106M) over the same week, to settle at LBP 21,302B ($14.13B). The increase is attributed to the rise in currency in circulation by LBP 207B ($137M), while demand deposits dropped by 47B ($31.17).
Over the week, total deposits (excluding demand deposits) decreased by LBP 436B ($289.22M), In details, term and saving deposits denominated in LBP and deposits denominated in foreign currencies fell by LBP 397B ($263M) and 26M, respectively.
As such, the rate of broad money dollarization increased to 70.16% in the week ending April 29,2020 up from 70.08% in the week ending April 16, 2019.
In its treasury bills (T-Bills) auction dating April 23 2020, the Ministry of Finance (MoF) raised LBP 362.15B ($240M) 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 3Y notes which grasped 82.95% of total subscriptions, while the 7Y notes and 6M bills accounted for the remaining shares of 16.98% and 0.07%, respectively. In details, the yields on the 6M bills stood at 4%, while the coupon rates on the 3Y notes and 7Y notes stood at 5.50% and 6.50%, respectively.
Source: BDL; MoF