All monetary aggregates ended the week of June 8, 2023 on a positive note. The overall money supply, “M4”, widened by LBP 4,888.64 billion on a weekly basis to LBP 1,231.71 trillion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 30 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 6,604.11 billion week-on-week to LBP 118,366 billion on the back of some LBP 6,784 billion increase in demand deposits which outweighed the LBP 180 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 6,629.97 billion on a weekly basis to settle at LBP 135,320 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) widened by LBP 25.86 billion (0.15%) to LBP 16,954 billion during the week of June 8, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 1,711.06 billion (0.16%) to LBP 1,076.76 trillion.