All monetary aggregates ended the week of October 10, 2019 on a negative note. In fact, the overall money supply, “M4”, plunged by LBP 860.71 billion on a weekly basis and by 2.18% on an annual basis to LBP 218,601 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 128 billion during the concerned week.

Similarly, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 141.01 billion week-on-week to LBP 11,505 billion on the back of some LBP 95 billion drop in demand deposits, coupled with a LBP 46 billion contraction in money in circulation. Local currency term deposits, “M2”, sank by LBP 989.14 billion on a weekly basis and by 12.99% year-on-year to settle at LBP 68,860 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) shed LBP 848.14 billion (1.46%) to LBP 57,354 billion during the week of October 10, while deposits denominated in foreign currencies (“M3-M2”) inched up by LBP 0.63 billion (0.00%) to reach LBP 138,563 billion.