Ministry of Finance Raised LP 90.94B in the TBs Auction of the 19th of May  

During the week ending May 12, broad Money M3 increased by LP 184B ($122.13M) to reach LP 188,945B ($125.34B). M3 registered a 6.70% yearly growth and a 1.26% year-to-date uptick. Meanwhile, M1 regressed by LP 157B ($104.12M) over the mentioned period, due to the decrease in money in circulation by LP 66B ($43.78M) and the decrease in demand deposits by LP 91B ($60.36M). Total deposits (excluding demand deposits) grew by LP 341.07B ($226.25M) during the week, given the $142M growth in deposits denominated in foreign currencies and the LP 127B progress in term and saving deposits in LP.

Over the above mentioned period, the broad money dollarization rate went up from 57.86% on the 5th of May to 58.56% on the 12th of May. According to the Central Bank, the overnight interbank remained unchanged at 4% since February 2016.

In the TBs auction held on the 19th of May, 2016, the Ministry of Finance (MoF) raised LP 90.94B ($60.32M), through the issuance of bills maturing in 3M and notes maturing in 1Y and 5Y. The highest demand was achieved on the 1Y notes, which grasped a 44.93% share of total subscriptions, while the 5Y notes and 3M bills captured the remaining shares of 42.41% and 12.66%, respectively. The discount rate on the 3M bills stood at 4.44%. Meanwhile the coupon rates on the 1Y notes and 5Y notes registered 5.35% and 6.74%, respectively. New subscriptions exceeded existing maturities by LP 47.27B ($31.36M).

 

 

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