All monetary aggregates ended the week of May 25, 2023 on a negative note. The overall money supply, “M4”, narrowed by LBP 3,878.61 billion on a weekly basis to LBP 1,212.83 trillion, notwithstanding the LBP 94 billion increase in the non-banking sector’s Treasury bills portfolio during the concerned week. It is worth noting that as of the beginning February 2023, the official exchange rate was adjusted to LBP 15,000 per US Dollar.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, fell by LBP 2,577.38 billion week-on-week to LBP 95,370 billion on the back of some LBP 2,191 billion decrease in demand deposits, coupled with the LBP 386 billion drop in currency in circulation. Local currency term deposits, “M2”, also fell by LBP 2,677.80 billion on a weekly basis to settle at LBP 112,006 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) fell by LBP 100.41 billion (0.60%) to LBP 16,636 billion during the week of May 25, with deposits denominated in foreign currencies (“M3-M2”) sinking by LBP 1,295.30 billion (0.12%) to LBP 1,081.30 trillion.