All monetary aggregates ended the week of August 27, 2020 on a positive note. In fact, the overall money supply, “M4”, soared by LBP 415.23 billion on a weekly basis yet fell by 7.25% on an annual basis to LBP 206,898 billion, noting that the non-banking sector’s Treasury bills portfolio rose by LBP 127 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, widened by LBP 544.21 million week-on-week to LBP 30,418 billion on the back of some LBP 555 billion expansion in demand deposits, which outweighed the LBP 11 billion contraction in currency in circulation. Local currency term deposits, “M2”, increased by LBP 339.86 billion on a weekly basis yet plunged by 17.73% year-on-year to settle at LBP 60,240 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 204.35 billion (0.68%) to LBP 29,822 billion during the week of August 27, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 51.24 billion (0.04%) to reach LBP 135,242 billion.