During the week ending on January 28th, broad Money M3 decreased by LP 100B ($66.32M) to reach LP 185,628B ($123.14B). M3 registered a 5.08% yearly growth and a 0.52% year-to-date downtick.
Similarly, M1 regressed by LP 90B ($59.70M) over the mentioned period, due to the decrease in demand deposits by LP 57B ($37.81M) and the LP 33B ($21.89M) drop in money in circulation.
Total deposits (excluding demand deposits) dropped by LP 10.53B ($6.98M) during the week, given the $70M contraction in deposits denominated in foreign currencies and the LP 95B increase in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate ticked down from to 57.78% on the 21st of January to 57.75% on the 28th of January. According to the Central Bank, the overnight interbank rate steadied at 3.00% by the end of October 2015.
In the TBs auction held on the February 04, 2016, the Ministry of Finance (MoF) raised LP 377.87B ($250.66M), through the issuance of bills and notes maturing in 12M and 5Y. The highest demand was achieved on the 5Y notes, which grasped an 87.44% share of total subscriptions, while the 12M bills captured the remaining 12.56%. The discount rate on the 12M bills stood at 5.08%, while the coupon rate on the 5Y notes registered 6.74%. New subscriptions exceeded existing maturities by LP 124.47B ($82.57M).