Ministry of Finance (MoF) Raised LBP 804B through its Auction on the 28th of September
During the week of 14 -21 September 2017, Broad Money M3 dropped by a weekly LBP 45B ($30M) to reach LBP 208,712B ($138.45B). In addition, M3 recorded growth rates of 7.47% on a year-on-year basis and 4.86% since the start of the year.
Over the same period, M1 went down by LBP 121B ($80M) to LBP 9,685B ($6.42B). This decrease is mainly due to a LBP 125B ($83M) fall in currency in circulation and a LBP 4B ($3M) increase in demand deposits.
Total deposits (excluding demand deposits) rose by LBP 76B ($50M) over the same period, as term and savings deposits denominated in local currency increased by LBP 52B ($34M) during the week, and deposits denominated in foreign currencies progressed by $16M.
The Broad Money dollarization rate registered a slight uptick from 60.08% on September 14, 2017 to 60.11% on September 21, 2017. According to the Central Bank, the overnight interbank rate remained stable at 3% between December 2016 and June 2017.
In the Treasury Bills auction held on September 28, 2017, The Ministry of Finance (MoF) raised LBP 804B ($533M), through the issuance of bills maturing in 6 months (6M) and notes maturing in 24 months (24M) and 120 months (120M). The highest demand was achieved on the 24M and 120M notes which each accounted for 22% of total subscriptions while the bills maturing in 6M accounted for the remaining 56%. The discount rates on the 6M bills stood at 4.87% while the coupon rates on the notes maturing in 24 and 120 months stood at 5.84% and 7.46%, respectively. New subscriptions exceeded existing maturities by LBP 277B ($184M).
