All monetary aggregates ended the week of February 6, 2020 on a negative note. In fact, the overall money supply, “M4”, narrowed by LBP 733.59 billion on a weekly basis and by 5.40% on an annual basis to LBP 209,960 billion, noting that the non-banking sector’s Treasury bills portfolio fell by LBP 93 billion during the concerned week.

Similarly, Lebanese-Pound denominated deposits and currency in circulation, “M1”, receded by LBP 35.50 billion week-on-week to LBP 18,165 billion on the back of some LBP 604 billion contraction in demand deposits, which outweighed the LBP 568 billion rise in money in circulation. Local currency term deposits, “M2”, plunged by LBP 794.02 billion on a weekly basis and by 19.25% year-on-year to settle at LBP 60,723 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) sank by LBP 758.52 billion (1.75%) to LBP 42,558 billion during the week of February 6, while deposits denominated in foreign currencies (“M3-M2”) increased by LBP 153.79 billion (0.11%) to reach LBP 137,889 billion.