Bank of Lebanon reserves continue to rise to their highest levels

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While all eyes are on the session of the House of Representatives to be held next Monday to discuss the accelerated laws passed by the government on taxes to finance the chain, the Lebanese financial markets witnessed a continuation of the balanced activity in the cutting market, while the external assets of the Bank of Lebanon record new levels, and recorded the Eurobond market foreign activity shy Accompanied by stable prices, and the Treasury bond market showed nominal surpluses at a time when the role of the Banque du Liban as a mediator between banks and the state has recently shrunk,. In detail, the cutting market maintained its balanced activity while the dollar continued to trade in the interbank market between 1514 LL. And 1514.50.

In parallel, the Central Bank’s external assets reached an unprecedented level of $ 44 billion at the end of September 2017, supported by recent operations launched by the Banque du Liban. With regard to the Eurobond market, a slight foreign activity was recorded on some short and long-term notes, as price stability has been withdrawn and the weighted Bid Z-spread average has declined amid rising foreign returns. On the treasury bond market, the primary market recorded a nominal surplus of 2245 during the first nine months of 2017,

The Bank of Lebanon began in September to reduce its role as an intermediary between banks and the state, as evidenced by its portfolio of bonds in lira, following the recent operations of the Banque du Liban, which required banks to employ facilities in LBP in subscriptions to primary and secondary treasury bills.

In the money market: Lira liquidity remained comfortably available this week, keeping the daily interest rate steady at 4.0%. On the other hand, bank deposits during the week ending 21 September 2017 showed an increase of LL 80 billion as a result of the growth of LBP 56 billion in deposits, a rise in LBP 52 billion in savings deposits and an increase in demand deposits in LBP 4 billion, Foreign currency deposits of LBP 24 billion (equivalent to USD 16 million).

The growth in deposits in lira is compared with a weekly growth rate of 32 billion pounds from the beginning of 2017. It also compares the increase in deposits in foreign currencies with a weekly average increase of 152 million dollars during the same period. (M2) decreased by LBP 65 billion, with a decrease in the volume of cash traded at LBP 125 billion and a decrease in the portfolio of treasury bonds, which was recorded by the non-banking sector at LL 20 billion during the said week. Billion pounds since the beginning of the year 2017, mainly supported by an increase of 8480 billion lira ($ 5625 million) in foreign currency deposits, which constituted 87.3% of the total growth of bank deposits.