All monetary aggregates ended the week of June 1, 2023 on a positive note. The overall money supply, “M4”, widened by LBP 13,985.75 billion on a weekly basis to LBP 1,226.82 trillion, noting that the non-banking sector’s Treasury bills portfolio increased by the LBP 124 billion 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”, rose by LBP 16,391.48 billion week-on-week to LBP 111,761 billion on the back of some LBP 8,474 billion increase in demand deposits, coupled with the LBP 7,917 billion rise in currency in circulation. It is worth mentioning that the sizeable increase in the “M1” monetary aggregate may be attributed to the printing of LBP banknotes by the Central Bank. Local currency term deposits, “M2”, also increased by LBP 16,684.16 billion on a weekly basis to settle at LBP 128,690 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) widened by LBP 292.68 billion (1.76%) to LBP 16,928 billion during the week of June 1, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 2,822.82 billion (0.26%) to LBP 1,078.47 trillion.