Broad Money M3 Declines to 129B by June 11, 2020

 According to BDL’s data, Broad Money (M3) decreased by a weekly LBP 6B ($14M) in the week ending June 11, 2020  to LBP 194,876B ($129.27B), thereby recording a yearly decline of 7.37% and a decrease of 3.76% since year-start (YTD).

In details, M1 expanded by LBP 511B ($339M) over the same week, to settle at LBP 25,510B ($16.92B). The increase is attributed to the rise in currency in circulation and in demand deposits by LBP 378B ($251M) and LBP 133B ($88M), respectively.

Over the week, total deposits (excluding demand deposits) decreased by LBP 517.30B ($343M), In details, term and saving deposits denominated in LBP and deposits denominated in foreign currencies fell by LBP 406B ($269M) and 74M, respectively.

As such, the rate of broad money dollarization slightly declined to 70.02% in the week ending June 11, 2020 down from 70.08% in the week ending June 7, 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

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