All monetary aggregates ended the week of October 13, 2022 on a positive note. The overall money supply, “M4”, widened by LBP 5,624.34 billion on a weekly basis and by 10.17% on an annual basis to LBP 234,722 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 40 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, soared by LBP 4,747.97 million week-on-week to LBP 84,813 billion on the back of some LBP 4,690 billion appreciation in currency in circulation, coupled with the LBP 58 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 4,820.11 billion on a weekly basis and by 36.69% year-on-year to settle at LBP 102,997 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) increased by LBP 72.14 billion (0.40%) to LBP 18,184 billion during the week of October 13, with deposits denominated in foreign currencies (“M3-M2”) rising by LBP 764.48 billion (0.68%) to LBP 113,640 billion.