During the week ending December 3, 2015, broad Money M3 increased by LP 85B ($56.19M) to reach LP 184,256B ($122.23B). M3 registered a 4.84% yearly growth and a 3.87% year-to-date growth.
Similarly, M1 expanded by LP 373B ($247.68M) over the mentioned period, due to the increase in demand deposits by LP 41B ($27.20M) and in money in circulation by LP 332B ($220.23M).
Total deposits (excluding demand deposits) decreased by LP 289B ($191.48M) during the week ending December 3, given the LP 53B decrease in term and saving deposits in LP and the $156M decline in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced a downtick from 57.93% on November 26 to 57.77% on December 3. According to the Central Bank, the overnight interbank rate increased from 2.75% at the end of August 2015 to 3.00% at end September.
In the TBs auction held on the 24th of December 2015, the Ministry of Finance (MoF) raised LP 323B ($214.26M), through the issuance of bills and notes maturing in 6M, 2Y and 10Y. The highest demand was achieved on the 10Y notes, which grasped a 68% share of total subscriptions, while the 2Y notes and the 6M bills captured the remaining 25% and 7%, respectively. The yield on the 6M bills and 2Y notes stood at respective levels of 4.87% and 5.84%, while the coupon rate on the 10Y notes stood at 7.46%.