According to BDL’s data, Broad Money (M3) fell by a weekly LBP 13B ($8M) in the week ending May 28, 2020 to LBP 194,599B ($129.09B), thereby recording a yearly decline of 7.41% and a decrease of 3.90% since year-start (YTD).
In details, M1 expanded by LBP 330B ($219M) over the same week, to settle at LBP 24,460B ($16.23B). The increase is attributed to the rise in currency in circulation by LBP 379B ($251M) while demand deposits declined by LBP 49B ($32M).
Over the week, total deposits (excluding demand deposits) decreased by LBP 342.68B ($227M), In details, term and saving deposits denominated in LBP fell by LBP 359B ($238M) while deposits denominated in foreign currencies rose by 11M.
As such, the rate of broad money dollarization rose to 70.10% in the week ending May 28, 2020 up from 70.09% in the week ending May 21, 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