Broad Money M3 Stood at $129B by July 2, 2020


BDL’s latest statistics on money supply revealed that Broad Money (M3) declined by a weekly LBP 32B ($21M) in the week ending July 2, 2020 to stand at LBP 194,896B ($129.28B), resulting in the annual decrease of 7.62% and a 3.75% decline since year-start (YTD).

In details, M1 grew by a weekly LBP 1,224B ($812M) to settle at LBP 27,207B ($18.05B) by July 2, 2020. The uptick is mainly attributed to the respective increases of LBP 478B ($317M) and LBP 746B ($494.86M) recorded in Currency in circulation and Demand deposits, over the same week.

In turn, total deposits (excluding Demand deposits) decreased by LBP 1,191B ($790.70M), owing  to a weekly LBP 590B ($391.37M) drop in Term and savings deposits and a $399M decline in deposits denominated in foreign currencies.

As such, the rate of broad money dollarization fell incrementally, as it went from 70.10% in the week ending June 25, 2020 to 69.78% in the week ending July 2, 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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