| ($B) | 28-Dec-22 | 21-Dec-23 | 28-Dec-23 | Change over the Period | Y-O-Y % Change | % Change y-t-d |
| M 1 | 64.95 | 5.51 | 5.54 | 0.03 | -91.48% | -91.41% |
| M 2 | 76.76 | 6.59 | 6.62 | 0.03 | -91.38% | -91.35% |
| M 3 | 151.78 | 76.76 | 76.95 | 0.19 | -49.30% | -48.98% |
| M 4 | 163.86 | 78.35 | 78.63 | 0.28 | -52.01% | -51.72% |
BDL’s latest statistics on money supply revealed that Broad Money (M3) increased by LBP 2,849B to stand at LBP 1,154,215B ($ 76.95B) by the week ending December 28, 2023. Furthermore, on an annual basis, M3 dropped by 49.3% year-over-year and by 48.98% 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 increased by LBP 384B by a week to settle at LBP 83,028B ($5.54B) by December 28, due to an increase in currency in circulation of LBP 1,881B and a decrease in demand deposits of LBP 1,497B.
In turn, total deposits (excluding Demand deposits) increased by LBP 2,466B ($164M), owing to a rise in Terms and saving deposits by LBP 2.68B and in deposits denominated in foreign currencies by $164.19M.
As such, the rate of broad money dollarization slightly dropped from 91.41% in the week ending December 21, 2023 to 91.4% in the week ending December 28, 2023.
Looking at interest rates, the average rate on deposits in LBP at commercial banks increased from 0.7% in October 2022 to 1.02% in October 2023. In contrast, the average rate on deposits in USD at commercial banks decreased from 0.09% in October 2022 to 0.05% in October 2023. In its turn, the average lending rate in LBP and USD, at commercial banks, went down from 5% and 5.11% in October 2022 to 3.34% and 3.7%, respectively, in October 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 October 2023, M3 stood at LBP 1,616,337 B versus LBP 223,313 B in October 2022: NFA were LBP 229,939 B compared to LBP 16,444 B in October 2022; CPS was LBP 125,628.4B compared to LBP 32,720 B in October 2022; NCPS was LBP 810,805B compared to LBP 37,311.7B in October 2023; and OIN were negative LBP 5,035B compared to LBP 136836 B in October 2022.
Source: BDL; MoF