MoF Raised $169M in the Treasury Bills’ Auction Held on September 24, 2020

BDL’s latest statistics on money supply revealed that Broad Money (M3) fell by a weekly LBP 169B ($112M) in the week ending September 24, 2020 to stand at LBP 195,815B ($129.89B), leading to an annual decrease of 6.81% and a 3.29% decline since year-start (YTD).

In details, M1 expanded by a weekly LBP 212B ($140M) to settle at LBP 31,719B ($21.04B) by September 24, 2020. The uptick is mainly attributed to increase in Currency in circulation and in Demand deposits by LBP 87B ($57.71M) and LBP 125B ($83M), respectively.

 In turn, total deposits (excluding Demand deposits) decreased by LBP 381B ($252.54M), owing to a weekly drops in Term and savings deposits and in Deposits denominated in foreign currencies by LBP 127B ($84M) and USD 168M, respectively.

As such, the rate of broad money dollarization declined incrementally, as it went from 68.95% in the week ending September 17, to 68.87% in the week ending September 24, 2020.

In its treasury bills (T-Bills) auction dating September 24, 2020, the Ministry of Finance (MoF) raised LBP 215.16B ($169.26M) through the issuance of T-bills maturing in 6 months (6M) and notes maturing in 2 Year (2Y) and 10Y. The highest demand was recorded on the 10Y notes which grasped 46.38% of total subscriptions, while the 2Y notes and 6M bills accounted for the remaining shares of 48.21% and 5.42%, 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

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