All monetary aggregates ended the week of July 13, 2023 on a negative note. The overall money supply, “M4”, narrowed by LBP 7,718.40 billion on a weekly basis to LBP 1,237.67 trillion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 447 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”, fell by LBP 7,882.29 billion week-on-week to LBP 127,170 billion on the back of some LBP 7,347 billion drop in currency in circulation coupled with a LBP 535 billion decrease in demand deposits. Local currency term deposits, “M2”, also fell by LBP 8,134.23 billion on a weekly basis to settle at LBP 143,756 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) narrowed by LBP 251.94 billion (1.50%) to LBP 16,586 billion during the week of July 13, while deposits denominated in foreign currencies (“M3-M2”) rose by LBP 863.24 billion (0.08%) to LBP 1,074.56 trillion.