During the week ending November 20, 2014, broad Money M3 increased by LP 244B ($162.17M), to reach LP 175,348B ($116.32B). M3 growth rate reached 6.49% year-on-year and 4.64% since year start. In contrast, M1 decreased by LP 144B ($95.28M) due to the drop in money in circulation by LP 102B ($67.66M) and demand deposits by LP 42B ($27.86M), respectively.
Total deposits (excluding demand deposits) jumped by LP 388.12B ($257.46M), given the rise in deposits denominated in foreign currencies and term and saving deposits in domestic currency by $151M and LP 162B, respectively. Over the above mentioned period, the broad money dollarization increased from 58.86% to 58.90%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of September 2014.
In the TBs auction held on the 27th of November 2014, the Ministry of Finance raised LP 487.51B ($323.39M), through the issuance of bills maturing in 1Y, and 2Y and 3Y notes. The highest demand was achieved on the 3Y notes that took a share of 94.15%, while the 1Y bills and 2Y notes accounted for 4.30% and 1.55%, respectively. The 1Y bills yielded 5.08%, while the average coupon rate for 2Y and 3Y notes stood at 5.84% and 6.50%, respectively. Maturing T-bills exceeded new subscriptions by LP 23.60B ($15.66M).