Broad Money M3 Retreated to $129B by June 18th 2020

 BDL’s latest statistics on money supply revealed that Broad Money (M3) declined by a weekly LBP 439B ($291M) in the week ending June 18th 2020 to stand at LBP 194,437B ($129B), resulting in the annual decrease of 7.7% and a 3.9% decline since year-start (YTD).

In details, M1 grew by a weekly LBP 245B ($163M) to settle at LBP 25,755B ($17B) by June 18th 2020. The uptick is mainly attributed to the respective increases of LBP 205B ($136M) and LBP 40B ($27M) recorded in Currency in circulation and Demand deposits, over the same week.

In turn, total deposits (excluding Demand deposits) decreased by LBP 684.4B ($454M), owing it to a weekly            LBP 323B ($214M) drop in Term and savings deposits and a $240M decline in deposits denominated in foreign currencies.

As such, the rate of broad money dollarization fell incrementally, as it went from 70.02% in the week ending June 11th 2020 to 69.99% in the week ending June 18th 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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