Complex Made Simple

Bank of Lebanon: Deposits decline by LBP93 billion in October

Decrease due to reduced foreign currency deposits and increased Lebanese pound deposits

Total deposits, with the exception of demand deposits, recorded a decrease of LBP93 billion ($61.69 million) during October, due to a decrease in foreign currency deposits by $92m in addition to the increase in deposits in Lebanese pounds by LBP45bn, Bank of Lebanon reveals.

Money supply (M3) increased by LBP208bn ($137.94m) during the week ending October 29, to reach LBP183.869bn ($121.97bn), an increase of 5.12 per cent compared with the same period last year and by 3.65 per cent since the beginning of this year, Aliqtisadi reports.

Money supply (M1) also increased during the same period to LBP301bn ($199.81m), due to higher demand deposits, estimated at LBP333bn ($220.90m), and lower value of money in circulation at LBP32bn ($21.23m).

The “dollarisation” of the money supply ratio decreased from 57.87 per cent on October 22 to 57.73 per cent by October 29, while interbank interest increased from 2.75 per cent by the end of August to three per cent by the end of September, according to the Bank of Lebanon.

Total deposits rose during the first week of last October to LBP211bn ($140m), due to an increase in foreign currency deposits.

($1 = LBP1,506, at the time of publishing)