During the week ending on June 07th, Broad Money (M3) decreased by a weekly LBP 53B ($35M) to reach LBP 205,649B ($136.4B). On a yearly basis, M3 added 2.72% y-o-y and rose by 1.51% since the start of the year.
M1 declined by LBP 47B ($31M) to LBP 10B ($6.69B) over the week as demand deposits dropped by LBP 280B ($186M) which more than offset the weekly rise of LBP 233B ($155M) in currency in circulation.
Total deposits (excluding demand deposits) fell by LBP 6B ($4M) over the same week, since deposits denominated in foreign currencies decreased by $41M and term and saving deposits in LBP rose by LBP 56B )$37M).
In turn, the broad money dollarization rate fell from 61.72% by May 31st to 59.81% by June 07th, 2018. According to the Central Bank, the overnight interbank rate rose from 4% in February 2018 to 4.3% in March 2018.
In the Treasury Bills Auction held on June 14th, 2018, the Ministry of Finance (MoF) raised LBP 2,092B ($1.39B), through the issuance of bills maturing in 3 months (3M) and 1 year (1Y), in addition to notes maturing in 3Y and 5Y.
The highest demand was achieved on the 3Y notes, which accounted for 95.6% of total subscriptions, while each of the notes maturing in 3M and 1Y and the bills maturing in 5Y respectively accounted for the remaining shares of 1%, 1% and 2.4%.
The discount rates on the 3M and 1Y bills stood at 4.39% and 5.08%, respectively, while the coupon rates on the notes maturing in 3Y and 5Y stood at 6.5% and 6.74%, respectively. New subscriptions exceeded existing maturities by LBP 61 B ($40.46M).