All monetary aggregates ended the week of July 15, 2021 on a negative note. In fact, the overall money supply, “M4”, fell by LBP 887.89 billion on a weekly basis yet rose by 3.00% on an annual basis to LBP 212,914 billion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 42 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 212.58 million week-on-week to LBP 51,405 billion on the back of some LBP 247 billion contraction in demand deposits, which outweighed the LBP 34 billion expansion in currency in circulation. Local currency term deposits, “M2”, also dropped by LBP 568.22 billion on a weekly basis yet increased by 26.96% year-on-year to settle at LBP 74,890 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 355.63 billion (1.49%) to LBP 23,486 billion during the week of July 15, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 277.87 billion (0.22%) to LBP 125,840 billion.