During the week ending September 18, 2014, broad Money M3 added by LP 245B ($162.42M), to reach LP 175,280B ($116.27B). M3 growth rate reached 7.26% year-on-year and 4.60% since year start. However, M1 regressed by LP 87B ($57.50M) due to the decrease in money in circulation by LP 116B ($76.95M) and an increase in demand deposits by LP 29B ($19.24M).
Total deposits (excluding demand deposits) grew by LP 332B ($219.92M), given the rise in term and saving deposits in domestic currency by LP 111B, and in deposits denominated in foreign currencies by $147M. Over the above mentioned period, the broad money dollarization went up from 59.14% to 59.19%. According to the Central Bank, the overnight interbank rate dropped from 9.00% end of June 2014 to 2.75% end of July.
In the TBs auction held on the 25th of September 2014, the Ministry of Finance raised LP 241.94B ($160.49M), through the issuance of bills maturing in 3M and 6M, and 5Y notes. The highest demand was achieved on the 5Y notes that took a share of 86.01%, while the 3M and 6M bills accounted for 4.77% and 9.22% respectively. The 3M and 6M bills yielded 4.39% and 4.87%, respectively. Meanwhile the average coupon rate for the 5Y notes stood at 6.74%. New subscriptions exceeded Maturing T-bills by LP 138.27B ($91.72 M).