All monetary aggregates ended the week of July 23, 2020 on a negative note. In fact, the overall money supply, “M4”, fell by LBP 146.24 billion on a weekly basis and by 7.71% on an annual basis to LBP 205,423 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 65 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, receded by LBP 2.94 billion week-on-week to LBP 27,744 billion on the back of some LBP 16 billion contraction in demand deposits, which outweighed the LBP 13 billion expansion in currency in circulation. Local currency term deposits, “M2”, dropped by LBP 275.54 billion on a weekly basis and by 20.78% year-on-year to settle at LBP 58,469 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) sank by LBP 272.60 billion (0.88%) to LBP 30,726 billion during the week of July 23, while deposits denominated in foreign currencies (“M3-M2”) increased by LBP 64.11 billion (0.05%) to reach LBP 135,383 billion.