During the week of January 29 until February 5 2015, broad Money M3 increased by LP 225B ($149.52M), to reach LP 176,331B ($116.97B) with a 5.32% year-on-year growth. Furthermore, M1 gained LP 125B ($83M) due to the increase in money in circulation by LP 281B ($186.40M) while demand deposits decrease by LP 156B ($103.48M).
Total deposits (excluding demand deposits) edged up by LP 100.25B ($66.50M), given the increase of deposits denominated in foreign currencies by $43M. Moreover, term and saving deposits in domestic currency edged up by LP 36B. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 58.48% the prior week to 58.44%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of November 2014.
In the TBs auction held on the 12th of February 2015, the Ministry of Finance raised LP 189.66B ($125.81M), through the issuance of bills maturing in 3M and 1Y, and 5Y notes. The highest demand was achieved on the 5Y notes that took a share of 80.19%, while the 1Y and 3M bills had respective shares of 10.88% and 8.93%. The 3M and 1Y bills yielded 4.39% and 5.08% respectively, while the average coupon rate for 5Y notes stood at 6.74%. Maturing T-bills exceeded new subscriptions by LP 18.83B ($12.49M).