BDL’s latest statistics on money supply revealed that Broad Money (M3) rose by a weekly LBP 884B ($587M) in the week ending August 6, 2020 to stand at LBP 195,334B ($129.57B), leading to an annual decrease of 7.68% and a 3.53% decline since year-start (YTD).
In details, M1 grew by a weekly LBP 1,003B ($665M) to settle at LBP 29,441B ($19.53B) by August 6, 2020. The uptick is mainly attributed to the respective increases of LBP 824B ($546M) and LBP 179B ($118M) recorded in Currency in circulation and Demand deposits, over the same week.
In turn, total deposits (excluding Demand deposits) decreased by LBP 118.53B ($78.62M), owing it to a weekly LBP 286B ($189M) drop in Term and savings deposits. Meanwhile, Deposits denominated in foreign currencies, rose by USD 111M.
As such, the rate of broad money dollarization fell incrementally, as it went from 69.65% in the week ending July 30, 2020 to 69.42% in the week ending August 6, 2020.
In its treasury bills (T-Bills) auction dating July 30 2020, the Ministry of Finance (MoF) raised LBP 105.74B ($70.14M) through the issuance of T-bills maturing in 6 months (6M) and notes maturing in 2 Years (2Y) and 10Y. The highest demand was recorded on the 10Y notes which grasped 62.26% of total subscriptions, while the 2Y notes and 6M bills accounted for the remaining shares of 28.37% and 9.37%, respectively. In details, the yields on the 6M bills stood at 3.92%, while the coupon rates on the 2Y notes and 10Y notes stood at 5% and 7%, respectively.
Source: BDL; MoF