Ministry of Finance (MoF) raised LP 433.61B in the TBs Auction on the 16th of June

During the week ending May 26, broad Money M3 increased by LP 397B ($263.49M) to reach LP 189,526B ($125.72B). M3 registered a 4.77% yearly growth and a 1.57% year-to-date uptick.

Likewise, M1 rose by LP 95B ($62.74M) over the mentioned period, due to the LP 198B ($131.34M) increase in demand deposits which outweighed the LP 103B ($68.33M) decrease in money in circulation.

Total deposits (excluding demand deposits) grew by LP 302.8B ($200.86M) during the week, given the $173M growth in deposits denominated in foreign currencies and the LP 42B progress in term and saving deposits in LP.

Over the above mentioned period, the broad money dollarization rate went up from 57.99% on the 19th of May to 58.01% on the 26th of May. According to the Central Bank, the overnight interbank dropped from 4% in February 2016 to 3% in March 2016.

In the TBs auction held on the 16th of June, 2016, the Ministry of Finance (MoF) raised LP 433.61B ($287.64M), through the issuance of bills maturing in 3M and 12M and notes maturing in 60M. The highest demand was achieved on the 60M notes, which grasped an 81.09% share of total subscriptions, while the 12M bills and 3M bills captured the remaining shares of 14.72% and 4.19%, respectively. The discount rate on the 3M bills and 12M bills stood at 4.39% and 5.08%, respectively. Meanwhile the coupon rates of the 60M notes registered 6.74%. New subscriptions exceeded existing maturities by LP 393.26B ($260.87M).

 

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