BDL’s latest statistics on money supply revealed that Broad Money (M3) dropped by a weekly LBP 263B ($175M) in the week ending August 13, 2020 to stand at LBP 195,071B ($129.40B), leading to an annual decrease of 7.81% and a 3.66% decline since year-start (YTD).
In details, M1 grew by a weekly LBP 240B ($159M) to settle at LBP 29,681B ($19.69B) by August 13, 2020. The uptick is mainly attributed to increase of LBP 357B ($237M) in Currency in circulation while Demand deposits dropped by LBP 117B ($77M).
In turn, total deposits (excluding Demand deposits) decreased by LBP 503.64B ($334M), owing to a weekly drop in Term and savings deposits and in Deposits denominated in foreign currencies LBP 274B ($181M) and USD 153M, respectively.
As such, the rate of broad money dollarization fell incrementally, as it went from 69.42% in the week ending August 6, 2020 to 69.40% in the week ending August 13, 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