All monetary aggregates ended the week of September 3, 2020 on a positive note. In fact, the overall money supply, “M4”, soared by LBP 770.05 billion on a weekly basis yet fell by 6.82% on an annual basis to LBP 207,668 billion, noting that the non-banking sector’s Treasury bills portfolio rose by LBP 34 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, widened by LBP 672.96 million week-on-week to LBP 31,090 billion on the back of some LBP 887 billion expansion in currency in circulation, which outweighed the LBP 214 billion contraction in demand deposits. Local currency term deposits, “M2”, increased by LBP 626.29 billion on a weekly basis yet plunged by 16.48% year-on-year to settle at LBP 60,866 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 46.66 billion (0.16%) to LBP 29,776 billion during the week of September 3, while deposits denominated in foreign currencies (“M3-M2”) increased by LBP 109.97 billion (0.08%) to reach LBP 135,352 billion.