In numbers … Cash in circulation increased by 170% | Phalanges

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The M3 monetary supply decreased by 2% in the first 11 months of 2020.

Figures issued by the Banque du Liban indicate that the M1 monetary block, which consists of cash in circulation and demand deposits in Lebanese pounds, amounted to 37.372 billion LBP at the end of November 2020, representing an increase of 125% from 16,620 billion LBP at the end of 2019. An increase of 147.7% from 15.089 billion LBP at the end of November 2019.

The cash in circulation reached 26,520 billion LBP at the end of November 2020, an increase of 170% from 9,818 billion LBP at the end of 2019 and a rate of 225.4% from 8,151 billion LBP at the end of November 2019.

Likewise, demand deposits in Lebanese pounds reached 10.851 billion pounds at the end of November 2020, representing an increase of 59.5% from the end of 2019 and by 56.4% from the end of November 2019. The M1 monetary block grew by 7% in November of 2019. 34.932 billion Lebanese pounds at the end of October 2020, so that cash in circulation increased by 9.4%, and demand deposits in the Lebanese currency increased by 1.6% from the previous month. The rise in cash in circulation reflects transfers from time deposits to demand deposits, as well as the shift to a cash-based economy.

In addition, the M2 monetary block, which includes the M1 cash block in addition to time deposits in Lebanese pounds, was 65.312 billion LBP at the end of November 2020, an increase of 3% from 63.484 billion LBP at the end of 2019, and a decrease of 1% 1 out of 66,054 billion LBP at the end of November 2019. Total time deposits in Lebanese pounds reached 27,940 billion LBP at the end of November 2020, a decrease of 40.4% from 46,864 billion LBP at the end of 2019 and a decrease of 45% 2 of 50,965 billion LBP at the end of November 2019.

The M2 monetary block increased in November by 3% from 63,410 billion Lebanese pounds at the end of October 2020, and time deposits in the Lebanese currency decreased by 2% on a monthly basis. These results were stated in the weekly economic report of Lebanon This Week by the Byblos Bank Group.

Moreover, the M3 monetary block, which includes the M2 monetary block, deposits in foreign currencies and financial instruments issued from the banking sector, amounted to 198,875 billion LBP at the end of November 2020, representing a 2% decrease from 202,831 billion LBP at the end of 2019. A decrease of 3.3% from 205,581 at the end of November 2019. The total foreign currency deposits reached 133,018 billion LBP at the end of November 2020, a decrease of 4.2% from the end of the year 2019 and by 4.4% from the end of October Second, 2019. Also, the financial instruments issued from the banking sector amounted to 546 billion LBP at the end of November 2020, compared to 437 billion LBP at the end of the year 2019 and 456 billion LBP at the end of November 2019. The M3 monetary block increased by 0.5%. From 197,791 LBP at the end of October 2020, deposits in foreign currencies slightly decreased by 0.6%, and financial instruments issued from the banking sector increased by 6.5% from the previous month.

In parallel, the M3 monetary block decreased by 3,956 billion LBP in the first 11 months of 2020, due to a 17,161 billion LBP decrease in credit to the private sector, including a 16,100 billion LBP decline in foreign currency credit, A decrease of 11.725 billion LBP in the net foreign currency assets of depository institutions, and a decrease of 10,599 billion LBP in net credit to the public sector, compared to an increase of 35.529 billion LBP in net other items.





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