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Bank of Lebanon: deposits rise by roughly $175 million

Money supply (M1) also increased during the same period due to higher estimated demand deposits

Bank of Lebanon (BDL) revealed an increase in total deposits with the exception of demand deposits, which amounted to LBP262 billion ($174 million), due to an increase in deposits in Lebanese pounds by approximately LBP7 billion in addition to the rise in foreign currency deposits estimated at $169m.

Thus, money supply (M3) increased to LBP 307bn, equivalent to $203.43m during the week ending August 27 to reach LBP 182.552bn ($ 121.10bn), advanced by 4.74 per cent compared with the same period in 2014 and by 2.91 per cent since the beginning of this year, Aliqtisad reports.

Money supply (M1) also increased during the same period to LBP44bn ($29.43m) due to higher demand deposits, estimated at LBP136bn ($90.22m), and contraction of cash in circulation as much as LBP92bn ($61.03m).

It is worth mentioning that the “dollarization” of the money supply ratio rose from 58.13 per cent through August 20 to 58.18 per cent by August27, while Interbank interest stabilised at 2.75 per cent by the end of June 2015.