During the week ending February 26 2015, broad Money M3 increased by LP 439B ($291.25M), to reach LP 176,796B ($117.28B) with a 5.07% year-on-year growth and 0.34% year-to-date growth. Furthermore, M1 augmented by LP 118B ($78.52M) due to an increase in demand deposits by LP 170B ($112.75M) and the decrease in money in circulation by LP 52B ($34.49M).
Total deposits (excluding demand deposits) edged up by LP 320.70B ($212.73M), given the increase of deposits denominated in foreign currencies by $97M and term and saving deposits in domestic currency by LP 175B. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 58.53% the prior week to 58.46%. 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 5th of March 2015, the Ministry of Finance raised LP 276.75B ($183.58M), through the issuance of bills maturing in 6M and 3Y notes. The highest demand was achieved on the 3Y notes that grasped a share of 82.30% of total subscription while the 6M bills contributed to the remaining 17.70%. While the 6M bills yielded 4.87%, the average coupon rate for 3Y notes stood at 6.50%. New subscriptions exceeded Maturing T-bills by LP 127.38B ($84.50M).