During the week ending April 28, broad Money M3 increased by LP 1,101B ($730.34M) to reach LP 188,621B ($125.12B). M3 registered a 6.78% yearly growth and a 1.08% year-to-date uptick. Similarly, M1 expanded by LP 554B ($367.81M) over the mentioned period, due to the increase in money in circulation by LP 160B ($106.14M) and the increase in demand deposits by LP 394B ($261.36M). Total deposits (excluding demand deposits) grew by LP 546.50B ($362.52M) during the week, given the $253M growth in deposits denominated in foreign currencies and the LP 165B progress in term and saving deposits in LP.
Over the above mentioned period, the broad money dollarization rate went down from 57.96% on the 21st of April to 57.83% on the 28th of April. According to the Central Bank, the overnight interbank rate increased from 3% end of January 2016 to 4% in February 2016.
In the TBs auction held on the 5th of May, 2016, the Ministry of Finance (MoF) raised LP 318.23B ($211.09M), through the issuance of bills maturing in 3M and 1Y and notes maturing in 5Y. The highest demand was achieved on the 1Y bills, which grasped an 86.56% share of total subscriptions, while the 3M bills and 5Y notes captured the remaining shares of 1.63% and 11.81%, respectively. The discount rates on the 3M and 1Y bills stood at 4.39% and 5.08%, respectively. Meanwhile the coupon rate on the 5Y notes registered 6.74%. New subscriptions exceeded existing maturities by LP 279.64B ($185.50M).