According to BDL’s data, Broad Money (M3) fell by a weekly LBP 202B ($134M) in the week ending May 7, 2020 to LBP 194,433B ($128.98B), thereby recording a yearly decline of 7.86% and a decrease of 3.98% since year-start (YTD).
In details, M1 expanded by LBP 740B ($491M) over the same week, to settle at LBP 22,948B ($15.22B). The increase is attributed to the rise in currency in circulation and in demand deposits by LBP 718B ($476M) and 22B ($14.6M), respectively.
Over the week, total deposits (excluding demand deposits) decreased by LBP 942.36B ($625M), In details, term and saving deposits denominated in LBP and deposits denominated in foreign currencies fell by LBP 699B ($463M) and 161M, respectively.
As such, the rate of broad money dollarization slightly decreased to 70.09% in the week ending May 7, 2020 down from 70.15% in the week ending April 30, 2020.
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