All monetary aggregates ended the week of January 16, 2025 on a positive note. The overall money supply, “M4”, widened by LBP 2,007.40 billion on a weekly basis to LBP 6,165.24 trillion, noting that the non-banking sector’s Treasury bills portfolio decreased by LBP 29.58 billion during the concerned week.

In parallel, Lebanese-Pound denominated deposits and currency in circulation, “M1”, rose by LBP 7,165.22 billion week-on-week to LBP 118,578 billion on the back of the LBP 6,145.99 billion increase in currency in circulation, coupled with the LBP 1,019.23 billion rise in demand deposits. It is worth noting that “M1” has increased substantially since January 2 as Lebanese residents rushed to sell their US Dollar banknotes to purchase LBP banknotes in speculation of an appreciation of the LBP/USD exchange rate prior to the election of President Joseph Aoun on January 9, with this trend continuing until January 16 following the appointment of judge Nawaf Salam as new Prime Minister on January 13. Local currency term deposits, “M2”, also rose by LBP 9,881.45 billion on a weekly basis to settle at LBP 148,832 billion.

Consequently, private sector term and saving deposits denominated in LBP (“M2-M1”) widened by LBP 2,716.23 billion (9.86%) to LBP 30,254 billion during the week of January 16, while deposits denominated in foreign currencies (“M3-M2”) sank by LBP 7,844.48 billion (0.13%) to LBP 6,006.84 trillion.