All monetary aggregates ended the week of May 20, 2021 on a negative note. The overall money supply, “M4”, narrowed by LBP 644.84 billion on a weekly basis yet rose by 3.14% on an annual basis to LBP 213,439 billion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 224 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, receded by LBP 69.44 million week-on-week to LBP 49,226 billion on the back of some LBP 165 billion contraction in demand deposits, which outweighed the LBP 90 billion expansion in currency in circulation. Local currency term deposits, “M2”, plunged by LBP 142.93 billion on a weekly basis yet rose by 26.52% year-on-year to settle at LBP 73,872 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 73.49 billion (0.30%) to LBP 24,646 billion during the week of May 20, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 278.01 billion (0.22%) to LBP 127,872 billion.