| ($B) | 15-Feb-23 | 08-Feb-24 | 15-Feb-24 | Change over the Period | Y-O-Y % Change | % Change y-t-d |
| M 1 | 6.55 | 0.886 | 0.894 | 0.007 | -86.35% | -83.86% |
| M 2 | 7.73 | 1.067 | 1.073 | 0.006 | -86.12% | -83.79% |
| M 3 | 49.64 | 70.58 | 70.54 | (0.04) | 42.11% | -8.33% |
| M 4 | 50.91 | 70.84 | 70.81 | (0.04) | 39.08% | -9.95% |
BDL’s latest statistics on money supply revealed that Broad Money (M3) decreased by LBP 3,437B to stand at LBP 6,313,261.591B ($ 70.54B) by the week ending February 15, 2024. Furthermore, on an annual basis, M3 increased by 42.11% year-over-year and dropped by 8.33% since year-start (YTD). Noting that effective February 8th 2024, the official exchange rate has been set at LBP 89,500 per dollar.
In details, M1 expanded by LBP 667.27B during the week of 9 to 15 February 2024, due to an increase in demand deposits of LBP 1,427.47B and a decrease in currency in circulation of LBP 760.20B.
In turn, total deposits (excluding Demand deposits) decreased by LBP 4,105B ($45.87M), owing to drop in Terms and saving deposits by LBP 92.67B and in deposits denominated in foreign currencies by $44.83M.
As such, the rate of broad money dollarization slightly decreased from 98.489% in the week ending February 8, 2024 to 98.479% in the week ending February 15, 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