All monetary aggregates ended the week of September 16, 2021 on a negative note. The overall money supply, “M4”, fell by LBP 450.19 billion on a weekly basis yet rose by 1.73% on an annual basis to LBP 212,134 billion, noting that the non-banking sector’s Treasury bills portfolio dropped by LBP 76 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, narrowed by LBP 33.12 million week-on-week to LBP 52,094 billion on the back of some LBP 52 billion contraction in currency in circulation, which outweighed the LBP 19 billion expansion in demand deposits. Local currency term deposits, “M2”, also dropped by LBP 158.23 billion on a weekly basis yet increased by 21.95% year-on-year to settle at LBP 74,640 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 125.11 billion (0.55%) to LBP 22,546 billion during the week of September 16, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 216.26 billion (0.17%) to LBP 124,759 billion.