MoF Raised $211M in the Treasury Bills’ Auction Held on September 17, 2020

BDL’s latest statistics on money supply revealed that Broad Money (M3) fell by a weekly LBP 36B ($24M) in the week ending September 10, 2020 to stand at LBP 196,182B ($130.14B), leading to an annual decrease of 6.96% and a 3.11% decline since year-start (YTD).

In details, M1 expanded by a weekly LBP 345B ($229M) to settle at LBP 31,435B ($20.85B) by September 10, 2020. The uptick is mainly attributed to increase in Currency in circulation by LBP 373B ($247M). Meanwhile, Demand deposits dropped by LBP 28B ($18.57M),

 In turn, total deposits (excluding Demand deposits) decreased by LBP 381B ($252M), owing to a weekly drops in Term and savings deposits and in Deposits denominated in foreign currencies by LBP 249B ($165M) and USD 87M, respectively.

As such, the rate of broad money dollarization fell incrementally, as it went from 68.98% in the week ending September 3, to 68.93% in the week ending September 10, 2020.

In its treasury bills (T-Bills) auction dating September 17, 2020, the Ministry of Finance (MoF) raised LBP 318.68B ($211.40M) through the issuance of T-bills maturing in 3 months (3M) and notes maturing in 1 Year (1Y) and 5Y. The highest demand was recorded on the 5Y notes which grasped 64.90% of total subscriptions, while the 1Y notes and 3M bills accounted for the remaining shares of 31.83% and 3.27%, respectively. In details, the yields on the 3M bills stood at 3.50%, while the coupon rates on the 1Y notes and 5Y notes stood at 5.5% and 6%, respectively.

 

Source: BDL; MoF

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