All monetary aggregates ended the week of June 17, 2021 on a negative note. In fact, the overall money supply, “M4”, fell by LBP 500.24 billion on a weekly basis yet rose by 3.42% on an annual basis to LBP 213,903 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 155 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 58.00 million week-on-week to LBP 50,595 billion on the back of some LBP 191 billion contraction in currency in circulation, which outweighed the LBP 133 billion expansion in demand deposits. Local currency term deposits, “M2”, also fell by LBP 200.61 billion on a weekly basis yet rose by 27.51% year-on-year to settle at LBP 74,806 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 142.61 billion (0.59%) to LBP 24,212 billion during the week of June 17, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 454.27 billion (0.36%) to LBP 126,953 billion.