All monetary aggregates ended the week of December 15, 2022 on a positive note. The overall money supply, “M4”, widened by LBP 1,157.91 billion on a weekly basis and by 12.28% on an annual basis to LBP 239,720 billion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 6 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, rose by LBP 1,433.14 billion week-on-week to LBP 90,743 billion on the back of some LBP 797 billion appreciation in currency in circulation coupled with the LBP 636 billion increase in demand deposits. It’s worth noting that the “M1” monetary aggregate rose by LBP 1.52 trillion during the first half of December which partly explains the 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 increased by LBP 1,343.84 billion on a weekly basis and by 41.16% year-on-year to settle at LBP 108,995 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) fell by LBP 89.30 billion (0.49%) to LBP 18,253 billion during the week of December 15, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 179.73 billion (0.16%) to LBP 112,404 billion.