All monetary aggregates ended the week of August 25, 2022 on a negative note. The overall money supply, “M4”, narrowed by LBP 1,156.83 billion on a weekly basis and by 1.81% on an annual basis to LBP 209,594 billion, notwithstanding the LBP 860 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”, fell by LBP 2,048.77 million week-on-week to LBP 59,207 billion on the back of some LBP 1,655 billion contraction in demand deposits, coupled with the LBP 394 billion decrease in currency in circulation. Local currency term deposits, “M2”, also fell by LBP 1,780.97 billion on a weekly basis yet rose by 3.27% year-on-year to settle at LBP 77,527 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) rose by LBP 267.80 billion (1.48%) to LBP 18,320 billion during the week of August 25, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 236.09 billion (0.21%) to LBP 114,305 billion.