All monetary aggregates ended the week of January 26, 2023 on a positive note. The overall money supply, “M4”, widened by LBP 1,897.20 billion on a weekly basis and by 14.96% on an annual basis to LBP 243,203 billion, noting that the non-banking sector’s Treasury bills portfolio increased by LBP 292 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, increased by LBP 1,743.74 billion week-on-week to LBP 94,310 billion on the back of some LBP 4,222 billion expansion in currency in circulation, outweighing the LBP 2,478 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 breached the 60,000 threshold against the USD back then. Local currency term deposits, “M2”, also rose by LBP 1,453.29 billion on a weekly basis and by 47.31% year-on-year to settle at LBP 112,069 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) narrowed by LBP 290.45 billion (1.61%) to LBP 17,759 billion during the week of January 26, with deposits denominated in foreign currencies (“M3-M2”) inching upwards by LBP 151.16 billion (0.14%) to LBP 111,932 billion.