M3 reached $76.48B Over the Period Ending November 16, 2023

($B)16-Nov-2209-Nov-2316-Nov-23Change over the PeriodY-O-Y % Change% Change y-t-d
M 159.965.285.360.08-91.05%-91.67%
M 271.826.316.390.08-91.10%-91.65%
M 3147.5776.4276.480.06-48.17%-49.28%
M 4159.5877.9678.020.06-51.11%-52.10%

BDL’s latest statistics on money supply revealed that Broad Money (M3) increased by LBP 924B to stand at LBP 1,147,243B ($ 76.48B) by the week ending November 16, 2023. Furthermore, on an annual basis, M3 dropped by 48.17% year-over-year and by 49.28% since year-start (YTD). Noting that effective February 1st 2023, the official exchange rate has been set at LBP 15,000 per dollar.

In details, M1 rose by LBP 1,272.14B by a week to settle at LBP 80,455B ($5.36B) by November 16, due to an increase in demand deposits of LBP 1,948.70 billion and a decrease in currency in circulation of LBP 676.56 billion.

In turn, total deposits (excluding Demand deposits) decreased by LBP 348M ($23M), owing to a drop in Terms and saving deposits by LBP 67B and in deposits denominated in foreign currencies by $18M.

As such, the rate of broad money dollarization slightly decreased from 91.74% in the week ending November 9, 2023 to 91.64% in the week ending November 16, 2023.

Looking at interest rates, the average rate on deposits in LBP at commercial banks decreased from 0.66% in September 2022 to 0.49% in September 2023. Similarly, the average rate on deposits in USD at commercial banks decreased from 0.09% in September 2022 to 0.03% in September 2023. In its turn, the average lending rate in LBP and USD, at commercial banks, went down from 5.09% and 4.61% in September 2022 to 4.36% and 3.15%, respectively, in September 2023.

Analytically, the money supply M3 can be derived from combining the balance sheet of BDL with the balance sheet of banks to arrive at the monetary survey of the banking system. The resulting M3 would be equal to the sum of: net foreign assets (NFA), credit to the private sector (CPS), net credit to the public sector (NCPS), and other items net (OIN). Latest data show that in September 2023, M3 stood at LBP 1,171,513.8B versus LBP 208,725.3B in September 2022: NFA were LBP 213,704.8B compared to LBP 16,565.6B in September 2022; CPS was LBP 127,318.5B compared to LBP 33,128B in September 2022; NCPS was LBP 839,162.3B compared to LBP 41,080.5B in September 2023; and OIN were negative LBP 8,671.9B compared to LBP 117,951.3B in September 2022.

Source: BDL; MoF

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