All monetary aggregates ended the week of January 19, 2023 on a positive note. The overall money supply, “M4”, widened by LBP 2,552.85 billion on a weekly basis and by 13.55% on an annual basis to LBP 241,306 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 87 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, increased by LBP 2,591.92 billion week-on-week to LBP 92,566 billion on the back of some LBP 3,619 billion expansion in currency in circulation, outweighing the LBP 1,027 billion decrease in demand deposits. It’s worth noting that the notable expansion in the “M1” monetary aggregate during the concerned period is attributed in part to the abrupt halt in Sayrafa transactions, added the fact that people resorted to selling USD in the black market to benefit from the depreciation of the local currency, and which reached the 50,000 threshold against the USD back then. Local currency term deposits, “M2”, also rose by LBP 2,474.66 billion on a weekly basis and by 43.91% year-on-year to settle at LBP 110,616 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) narrowed by LBP 117.26 billion (0.65%) to LBP 18,049 billion during the week of January 19, with deposits denominated in foreign currencies (“M3-M2”) inching downwards by LBP 8.54 billion (0.01%) to LBP 111,781 billion.