BDL’s latest statistics on money supply revealed that Broad Money (M3) rose by a weekly LBP 123B ($81M) in the week ending August 20, 2020 to stand at LBP 195,193B ($129.48B), leading to an annual decrease of 7.76% and a 3.60% decline since year-start (YTD).
In details, M1 grew by a weekly LBP 192B ($128M) to settle at LBP 29,873B ($19.82B) by August 20, 2020. The uptick is mainly attributed to increases in Currency in circulation and Demand deposits by LBP 176B ($117M) and LBP 16B ($10.61M), respectively.
In turn, total deposits (excluding Demand deposits) decreased by LBP 69.57B ($46.15M), owing to a weekly drop in Deposits denominated in foreign currencies by USD 53M while Term and savings deposits rose weekly by LBP 10B ($6.63M).
As such, the rate of broad money dollarization fell incrementally, as it went from 69.40% in the week ending August 13, 2020 to 69.31% in the week ending August 20, 2020.
In its treasury bills (T-Bills) auction dating August 27 2020, the Ministry of Finance (MoF) raised LBP 350B ($237.17M) 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 58.49% of total subscriptions, while the 2Y notes and 6M bills accounted for the remaining shares of 38.57% and 2.94%, respectively. In details, the yields on the 6M bills stood at 4%, while the coupon rates on the 2Y notes and 10Y notes stood at 5% and 7%, respectively.
Source: BDL; MoF