All monetary aggregates ended the week of August 12, 2021 on a negative note. In fact, the overall money supply, “M4”, fell by LBP 252.60 billion on a weekly basis yet rose by 2.62% on an annual basis to LBP 212,705 billion, notwithstanding the LBP 173 billion increase in the non-banking sector’s Treasury bills portfolio during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 133.29 million week-on-week to LBP 51,599 billion on the back of some LBP 240 billion contraction in demand deposits, which outweighed the LBP 107 billion expansion in currency in circulation. Local currency term deposits, “M2”, also fell by LBP 268.41 billion on a weekly basis yet rose by 24.99% year-on-year to settle at LBP 74,657 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 135.12 billion (0.58%) to LBP 23,058 billion during the week of August 12, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 157.56 billion (0.13%) to LBP 125,489 billion.