During the two weeks ending October 30, 2014, broad Money M3 plunged by LP 273B ($180.79M), to reach LP 174,875B ($116.00B). M3 growth rate reached 6.42% year-on-year and 4.36% since year start. Similarly, M1 declined by LP 3B ($1.83M) due to the decrease in money in circulation by LP 123B ($81.59M) and increase in demand deposits by LP 120B ($79.60M).
Total deposits (excluding demand deposits) plummeted by LP 269.78B ($178.96M), as deposits denominated in foreign currencies narrowed by $225M, while term and saving deposits in domestic currency grew by LP 68B. Over the above mentioned period, the broad money dollarization went down from 58.95% to 58.85%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of August 2014.
In the TBs auction held on the 6th of November 2014, the Ministry of Finance raised LP 16.76B ($11.12M), through the issuance of bills maturing in 3M and 6M, and 5Y notes. Demand was channeled to a special auction of 10Y notes, with an average coupon rate of 7.98%, by which the government raised LP978.03B ($648.78B). The 3M and 6M bills yielded 4.39% and 4.87%, respectively, while the average coupon rate for the 5Y notes stood at 6.74%. New subscriptions exceeded maturing T-bills by LP 655.80B ($435.02M).