Ministry of Finance (MoF) Raised LBP 669.62B through its Auction on the 15th of September
During the week ending September 8, Broad Money M3 widened by LP 282B ($187M) from September 1 to reach LP 193,333B ($128B). As such, M3 recorded a 5.41% annual growth and a 3.61% rise since the start of the year.
On the other hand, M1 regressed LP 147B ($97M) over the same period to LP 9,510B ($6.31B). This drop can be attributed to the decrease in demand deposits by LBP 213B ($141M) and the increase in money in circulation by LBP 66B ($44M).
Total deposits (excluding demand deposits) increased by LP 428B ($284M) during the week, as deposits denominated in foreign currencies and term and saving deposits denominated in local currency registered respective growths of $241M and LP 65B.
Over the above mentioned period, the broad money dollarization rate went up from 57.85% on September the 1st to 57.95% on September 8th. According to the Central Bank, the overnight interbank fell from 3.25% in May 2016 to 3% in June 2016.
In the Treasury Bills’ auction held on September 15, 2016, the Ministry of Finance (MoF) raised LBP 669.62B ($444M), through the issuance of bills maturing in 6M, and notes maturing in 36M and 84M. The highest demand was achieved on the 36M notes, which held a 51.03% share of total subscriptions, while the 6M and 84M bills accounted for the remaining shares of 9.20% and 39.77%, respectively. The discount rates on the 6M bills stood at 4.87%, while the coupon rate on the 36M and 84M notes registered 6.50% and 7.08%, respectively. New subscriptions exceeded existing maturities by LBP 207.56B ($138M). Worth mentioning, the purchase value for the 6M bills reached LBP 60.10B ($39.87M).
