All monetary aggregates ended the week of July 29, 2021 on a negative note. In fact, the overall money supply, “M4”, fell by LBP 571.56 billion on a weekly basis yet rose by 3.12% on an annual basis to LBP 213,144 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 37 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 457.57 million week-on-week to LBP 51,642 billion on the back of some LBP 372 billion contraction in currency in circulation, coupled with the LBP 86 billion drop in demand deposits. Local currency term deposits, “M2”, also fell by LBP 580.48 billion on a weekly basis yet rose by 26.69% year-on-year to settle at LBP 74,935 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 122.90 billion (0.52%) to LBP 23,293 billion during the week of July 29, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 27.56 billion (0.02%) to LBP 125,844 billion.