According to BDL’s data, Broad Money (M3) rose by a weekly LBP 284B ($188M) in the week ending June 4, 2020 to LBP 194,883B ($129.28B), thereby recording a yearly decline of 7.27% and a decrease of 3.76% since year-start (YTD).
In details, M1 expanded by LBP 539B ($357M) over the same week, to settle at LBP 24,999B ($16.58B). The increase is attributed to the rise in currency in circulation by LBP 618B ($409M) while demand deposits declined by LBP 79B ($52M).
Over the week, total deposits (excluding demand deposits) decreased by LBP 254.93B ($169M), In details, term and saving deposits denominated in LBP fell by LBP 404B ($268M) while deposits denominated in foreign currencies rose by 99M.
As such, the rate of broad money dollarization declined to 70.08% in the week ending June 4, 2020 down from 70.10% in the week ending May 28, 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