| ($B) | 26-Sep-23 | 19-Sep-24 | 26-Sep-24 | Change over the Period | Y-O-Y % Change | % Change y-t-d |
| M 1 | 5.73 | 0.988 | 0.960 | -0.028 | -83.27% | -82.66% |
| M 2 | 6.75 | 1.195 | 1.198 | 0.003 | -82.25% | -81.90% |
| M 3 | 78.14 | 69.63 | 69.46 | -0.17 | -11.11% | -9.74% |
| M 4 | 79.59 | 69.78 | 69.60 | -0.18 | -12.54% | -11.48% |
BDL’s latest statistics on money supply revealed that Broad Money (M3) decreased by LBP 15,435 billion to stand at LBP 6,216,334 billion ($69.46 billion) by the week ending September 26th, 2024. Furthermore, on an annual basis, M3 decreased by 11.11% year-over-year and by 9.74% 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 decreased by LBP 2,495 billion during the week ending September 26th, 2024, due to a decrease in currency in circulation of LBP 1,873.01 billion and in demand deposits of LBP 622.25 billion.
In turn, total deposits (excluding Demand deposits) decreased by LBP 12,939.82 billion ($145 million), owing to an increase in term and saving deposits by LBP 2,803.39 billion and a decrease in deposits denominated in foreign currencies by USD 175.90 million during the week.
As such, the rate of broad money dollarization slightly decreased from 98.284% in the week ending September 19th, 2024 to 98.275% in the week ending September 26th, 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 6,374,366 billion versus LBP 1,228,968 billion in February 2023; NFA were LBP 1,503,458B compared to LBP 205,992 billion in February 2023; CPS was LBP 641,269 billion compared to LBP 151,112 billion in February 2023; NCPS was LBP 4,879,201 billion compared to LBP 823,776 billion in February 2023; and OIN were negative LBP 649,563 billion compared to LBP 48,088 billion in February 2023.
Source: BDL; MoF
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