All monetary aggregates ended the week of October 20, 2022 on a positive note. The overall money supply, “M4”, widened by LBP 4,509.51 billion on a weekly basis and by 12.34% on an annual basis to LBP 239,232 billion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 117 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, soared by LBP 4,618.73 million week-on-week to LBP 89,432 billion on the back of some LBP 4,882 billion appreciation in currency in circulation, outweighing the LBP 263 billion decrease in demand deposits. It’s worth noting that the “M1” monetary aggregate rose by LBP 29.36 trillion during the September 15 – October 20, 2022 period which can be explained by a somewhat equivalent increase in currency in circulation outside the Central Bank on BDL’s balance sheet during the September 15 – October 31, 2022 (LBP 29.95 trillion increase) period 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 4,691.65 billion on a weekly basis and by 42.86% year-on-year to settle at LBP 107,689 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) increased by LBP 72.92 billion (0.40%) to LBP 18,256 billion during the week of October 20, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 65.62 billion (0.06%) to LBP 113,575 billion.