All monetary aggregates ended the week of September 1, 2022 on a negative note. The overall money supply, “M4”, narrowed by LBP 505.91 billion on a weekly basis and by 2.04% on an annual basis to LBP 209,088 billion, notwithstanding the LBP 580 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 291.05 million week-on-week to LBP 58,916 billion on the back of some LBP 162 billion contraction in currency in circulation, coupled with the LBP 129 billion decrease in demand deposits. Local currency term deposits, “M2”, also fell by LBP 630.60 billion on a weekly basis yet rose by 2.32% year-on-year to settle at LBP 76,896 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) receded by LBP 339.55 billion (1.85%) to LBP 17,981 billion during the week of September 1, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 454.99 billion (0.40%) to LBP 113,850 billion.