Ministry of Finance (MoF) Raised LBP 292B through its Auction on the 29th of September
During the week ending September 22, Broad Money M3 grew by LP 206B ($136M) from September 15 to reach LP 193,841B ($129B). As such, M3 recorded a 5.46% annual increase and a 3.88% rise since the start of the year.
However, M1 regressed LP 321B ($214M) over the same period to LP 9,135B ($6B). This fall can be attributed to the drop in both demand deposits and money in circulation by LBP 151B ($100M) and LBP 170B ($113M), respectively.
Total deposits (excluding demand deposits) escalated by LP 527B ($349M) during the week, as deposits denominated in foreign currencies and term and saving deposits denominated in local currency registered respective growths of $204M and LP 220B.
Over the above mentioned period, the broad money dollarization rate rose from 58.02% on September 15th to 58.11% on September 22nd. According to the Central Bank, the overnight interbank rate remained stable at 3% between June and July 2016.
In the Treasury Bills’ auction held on September 29, 2016, the Ministry of Finance (MoF) raised LBP 292B ($195M), through the issuance of bills maturing in 6M and notes maturing in 24M and 120M. The highest demand was achieved on the 24M notes, which held a 48.79% share of total subscriptions, while the 6M bills and 120M notes accounted for the remaining shares of 10.83% and 40.38%, respectively. The discount rates on the 6M bills stood at 4.87%, and the coupon rates on the 24M and 120M notes recorded 5.84% and 7.46%, respectively. New subscriptions lagged existing maturities by LBP 41B ($27M).
