All monetary aggregates ended the week of October 27, 2022 on a positive note. The overall money supply, “M4”, widened by LBP 1,858.04 billion on a weekly basis and by 13.27% on an annual basis to LBP 241,090 billion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 153 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, soared by LBP 2,050.63 million week-on-week to LBP 91,483 billion on the back of some LBP 1,529 billion appreciation in currency in circulation, coupled with the LBP 522 billion increase in demand deposits. It’s worth noting that the “M1” monetary aggregate rose by LBP 31.41 trillion during the September 15 – October 27, 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 2,088.64 billion on a weekly basis and by 45.58% year-on-year to settle at LBP 109,777 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) increased by LBP 38.01 billion (0.21%) to LBP 18,294 billion during the week of October 27, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 77.38 billion (0.07%) to LBP 113,497 billion.