Ministry of Finance (MoF) Raised LBP 408B through its Auction on the 27th of October
During the week ending October 20, Broad Money M3 fell by a weekly LP 633B ($420M) to reach LP 193,394B ($128B). As such, M3 recorded a 5.10% annual increase and a 3.64% rise since the start of the year.
Moreover, M1 regressed by LP 346B ($230M) over the same period to LP 8,879B ($6B). This fall can be attributed to the respective drops in demand deposits and money in circulation of LBP 201B ($133M) and LBP 145B ($96M).
Total deposits (excluding demand deposits) narrowed by LP 287B ($190M) during the week, as deposits denominated in foreign currencies and term and saving deposits denominated in local currency registered respective falls of $132M and LP 88B.
Over the above mentioned period, the broad money dollarization rate rose from 58.13% on October 13th to 58.22% on October 20th. According to the Central Bank, the overnight interbank rate remained stable at 3% between July and August 2016.
In the Treasury Bills’ auction held on October 27, 2016, the Ministry of Finance (MoF) raised LBP 408B ($271M), through the issuance of bills maturing in 6M and notes maturing in 24M and 120M. The highest demand was achieved on the 120M notes, which held a 50.36% share of total subscriptions, while the 6M bills and 24M notes accounted for the remaining shares of 12.44% and 37.20%, respectively. The discount rates on the 6M 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 320B ($212M).
