All monetary aggregates ended the week of October 6, 2022 on a positive note. The overall money supply, “M4”, widened by LBP 6,248.86 billion on a weekly basis and by 7.48% on an annual basis to LBP 229,098 billion, notwithstanding the LBP 208 billion decrease in the non-banking sector’s Treasury bills portfolio during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, soared by LBP 6,252.25 million week-on-week to LBP 80,065 billion on the back of some LBP 6,223 billion appreciation in currency in circulation, coupled with the LBP 29 billion increase in demand deposits. It’s worth noting that the “M1” monetary aggregate rose by LBP 13.75 trillion during the second half of September alone which can be explained by a somewhat equivalent increase in currency in circulation outside the Central Bank on BDL’s balance sheet at a time when the latter was printing LBP banknotes to purchase USD banknotes to boost FX reserves. Local currency term deposits, “M2”, also rose by LBP 6,655.03 billion on a weekly basis and by 30.34% year-on-year to settle at LBP 98,177 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) increased by LBP 402.78 billion (2.27%) to LBP 18,111 billion during the week of October 6, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 198.42 billion (0.18%) to LBP 112,876 billion.