| ($B) | 25-Jan-23 | 18-Jan-24 | 25-Jan-24 | Change over the Period | Y-O-Y % Change | % Change y-t-d |
| M 1 | 63.44 | 5.50 | 5.48 | (0.02) | -91.36% | -91.49% |
| M 2 | 75.29 | 6.59 | 6.57 | (0.02) | -91.28% | -91.42% |
| M 3 | 150.11 | 76.33 | 76.26 | (0.08) | -49.20% | -49.43% |
| M 4 | 162.72 | 77.99 | 77.87 | (0.12) | -52.14% | -52.19% |
BDL’s latest statistics on money supply revealed that Broad Money (M3) decreased by LBP 1,150B to stand at LBP 1,143,852B ($ 76.26B) by the week ending January 25, 2023. Furthermore, on an annual basis, M3 dropped by 49.20% year-over-year and by 49.43% 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 retreated by LBP 310B by a week to settle at LBP 82,207B ($5.48B) by January 25, due to a decrease in currency in circulation of LBP 969.22 billion and an increase in demand deposits of LBP 659.28 billion.
In turn, total deposits (excluding Demand deposits) decreased by LBP 839.78B ($55.98M), owing to a drop in Terms and saving deposits by LBP 28.95 B and in deposits denominated in foreign currencies by $54.05 M.
As such, the rate of broad money dollarization slightly increased from 91.368% in the week ending January 18, 2024 to 91.389% in the week ending January 25, 2024.
Looking at interest rates, the average rate on deposits in LBP at commercial banks increased from 0.65% in November 2022 to 1.41% in November 2023. In contrast, the average rate on deposits in USD at commercial banks decreased from 0.1% in November 2022 to 0.05% in November 2023. In its turn, the average lending rate in LBP and USD, at commercial banks, went down from 5.3% and 4.35% in November 2022 to 3.29% and 3.08%, respectively, in November 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 November 2023, M3 stood at LBP 1,166,151 B versus LBP 221,731 B in November 2022: NFA were LBP 238,309 B compared to LBP 17,545 B in November 2022; CPS was LBP 125,384B compared to LBP 31,796 B in November 2022; NCPS was LBP 801,109B compared to LBP 33,691B in November 2023; and OIN were LBP 1,348B compared to LBP 138,699 B in November 2022.
Source: BDL; MoF