During the week ending August 14 2014, broad Money M3 added by LP 119B ($79.23M), to reach LP 173,972B ($115.40B). M3 growth rate reached 7.10% year-on-year and 3.82% since year start. In contrast, M1 regressed by LP 80B ($53.30M) due to the drop in money in circulation by LP 91B ($60.36M), while demand deposits increased by LP 11B ($7.30M).
Total deposits (excluding demand deposits) grew by LP 199.80B ($132.54M), given the rise in deposits denominated in foreign currencies by $119M. Likewise, term and saving deposits in domestic currency advanced by LP 20B. Over the above mentioned period, the broad money dollarization went up from 59.14% to 59.20%. According to the Central Bank, the overnight interbank rate swelled from 2.75% end of May 2014 to 9.00% end of June.
In the TBs auction held on the 28th of August 2014, the Ministry of Finance raised LP 325.80B ($216.12M), 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 85.30%, while the 3M and 6M bills accounted for 3.38% and 11.32% 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 39.06B ($25.91M).