All monetary aggregates ended the week of July 2, 2020 on a positive note. The overall money supply, “M4”, rose by LBP 15.90 billion on a weekly basis, yet fell by 7.04% on an annual basis to LBP 206,382 billion, notwithstanding the LBP 16 billion decrease in the non-banking sector’s Treasury bills portfolio.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, widened by LBP 1,224.14 billion week-on-week to LBP 27,207 billion on the back of some LBP 746 billion expansion in demand deposits, coupled with some LBP 478 billion rise in money in circulation. Local currency term deposits, “M2” also expanded by LBP 633.73 billion on a weekly basis yet plunged by 20.44% year-on-year to settle at LBP 58,893 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) sank by LBP 590.41 billion (1.83%) to LBP 31,685 billion during the week of July 2, with deposits denominated in foreign currencies (“M3-M2”) receding by LBP 601.58 billion (0.44%) to reach LBP 136,003 billion.