During the week of February 6 2015, broad Money M3 decreased by LP 25B ($16.87M), to reach LP 176,306B ($116.95B) with a 5.30% year-on-year growth. Furthermore, M1 declined by LP 211B ($139.98M) due to the decrease in money in circulation and demand deposits by LP 98B ($65.01M) and LP 113B ($74.96M), respectively.
Total deposits (excluding demand deposits) edged up by LP 185.59B ($123.94M), given the increase of deposits denominated in foreign currencies by $38M and term and saving deposits in domestic currency by LP 128B. Over the above mentioned period, the broad money dollarization rate experienced an uptick from 58.44% the prior week to 58.49%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of December 2014.
In the TBs auction held on the 19th of February 2015, the Ministry of Finance raised LP 922.78B ($612.13M), through the issuance of bills maturing in 6M and 2Y and 7Y notes. The highest demand was achieved on the 2Y and 7Y notes that grasped respective shares of 37.23% and 56.58% while the 6M bills contributed to the remaining 6.19%. While the 6M bills yielded 4.87%, the average coupon rate for the 2Y and 7Y notes stood at 5.84% and 7.08%, respectively. New subscriptions exceeded Maturing T-bills by LP 567.46B ($376.42M).