| ($B) | 25-Apr-23 | 18-Apr-24 | 25-Apr-24 | Change over the Period | Y-O-Y % Change | % Change y-t-d |
| M 1 | 6.01 | 0.984 | 0.960 | (0.024) | -84.03% | -82.65% |
| M 2 | 7.16 | 1.169 | 1.138 | (0.030) | -84.11% | -82.81% |
| M 3 | 80.53 | 70.17 | 70.10 | (0.07) | -12.95% | -8.90% |
| M 4 | 81.84 | 70.42 | 70.35 | (0.07) | -14.04% | -10.54% |
BDL’s latest statistics on money supply revealed that Broad Money (M3) decreased by LBP 6,040B to stand at LBP 6,274,012B ($70.1B) by the week ending April 25, 2024. Furthermore, on an annual basis, M3 decreased by 12.95% year-over-year and by 8.9% 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 contracted by LBP 2,146.55 billion during the week ending April 25, 2024, due to a decrease in currency in circulation of LBP 1,387.35 billion and in demand deposits of LBP 759.20 billion.
In turn, total deposits (excluding Demand deposits) decreased by LBP 3,893B ($44M), owing to a drop in Terms and saving deposits by LBP 568.39 billion (6.35M) and in deposits denominated in foreign currencies $ 37.15 million compared to the previous week.
As such, the rate of broad money dollarization slightly increased from 98.34% in the week ending April 18, 2024 to 98.38% in the week ending April 25, 2024.
Looking at interest rates, the average rate on deposits in LBP at commercial banks increased from 0.71% in February 2023 to 0.94% in February 2024. Meanwhile, the average rate on deposits in USD at commercial banks decreased from 0.09% in February 2023 to 0.04% in February 2024. In its turn, the average lending rate in LBP and USD, at commercial banks, went down from 4.75% and 5.17% in February 2023 to 2.47% and 2.55%, respectively, in February 2024.
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 February 2024, M3 stood at LBP 6,374,365.5 B versus LBP 1,228,968.2B in February 2023; NFA were LBP 1,503,458B compared to LBP 205,992B in February 2023; CPS was LBP 641,269B compared to LBP 151,112B in February 2023; NCPS was LBP 4,879,201B compared to LBP 823,776B in February 2023; and OIN were negative LBP 649,563B compared to LBP 48,088B in February 2023.
Source: BDL; MoF