During the week ending November 12, 2015, broad Money M3 decreased by LP 274B ($182M) to reach LP 183,813B ($121.93B). M3 registered a 4.93% yearly growth and a 3.62% year-to-date growth.
Similarly, M1 decreased by LP 208B ($138M) over the mentioned period, due to the decline in money in circulation by LP 107B ($71M) and the LP 101B ($67M) contraction in demand deposits.
Total deposits (excluding demand deposits) decreased by LP 66B ($44M) during the week ending November 12, given the LP 118B drop in term and saving deposits in LP which outweighed the $34M expansion in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced an uptick from 57.69% on November 5th to 57.80% on November 12th. According to the Central Bank, the overnight interbank rate increased from 2.75% at the end of August 2015 to 3.00% at end September.
In the TBs auction held on the 19th of November 2015, the Ministry of Finance (MoF) raised LP 198B ($131M), through the issuance of bills and notes maturing in 3 Months (3M), 12M and 5 Years (5Y). The highest demand was achieved on the 5Y notes, which grasped a 75% share in total subscriptions, while the 3M and 12M bills captured the remaining 6% and 19%, respectively. The yields on the 3M and 6M bills stood at 4.39% and 5.08% while the coupon rate on the 5Y notes stood at 6.74%. New subscriptions exceeded maturing T-bills by LP 129B ($86M).