During the three weeks ending December 24, 2015, broad Money M3 increased by LP 1,925B ($1.28B) to reach LP 186,182B ($123.50B). M3 registered a 5.20% yearly growth and a 4.95% year-to-date growth.
Similarly, M1 expanded by LP 549B ($363.86M) over the mentioned period, due to the increase in demand deposits by LP 489B ($324.38M) and in money in circulation by LP 59B ($39.14M).
Total deposits (excluding demand deposits) grew by LP 1,376.78B ($913.28M) during the three weeks ending December 24, given the LP 197B increase in term and saving deposits in LP and the $783M expansion in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced a downtick from 57.93% on November 26 to 57.77% on December 3. 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 7th of January 2016, the Ministry of Finance (MoF) raised LP 461B ($305.80M), through the issuance of bills and notes maturing in 1Y and 5Y. The highest demand was achieved on the 1Y bills, which grasped a 72.23% share of total subscriptions, while the 5Y notes captured the remaining 27.77%. Yields on the 1Y bills stood at 5.08%, while the coupon rate on the 5Y notes was 6.74%.