During the week ending on February 4th, broad Money M3 increased by LP 220B ($145.93M) to reach LP 185,849B ($123.28B). M3 registered a 4.83% yearly growth and a 0.40% year-to-date downtick.
Similarly, M1 progressed by LP 83B ($55.06M) over the mentioned period, due to the increase in money in circulation by LP 288B ($191.04M) and LP 205B ($135.99M) drop in demand deposits.
Total deposits (excluding demand deposits) increased by LP 137.37B ($91.12M) during the week, given the $17M contraction in deposits denominated in foreign currencies and the LP 163B increase in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate ticked down from 57.75% on the 28th of January to 57.67% on the 4th of February. 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 18, 2016, the Ministry of Finance (MoF) raised LP 463.84B ($307.69M), through the issuance of bills and notes maturing in 1Y and 10Y. The highest demand was achieved on the 10Y notes, which grasped an 89.55% share of total subscriptions, while the 3M bills captured the remaining 10.45%. The discount rate on the 1Y bills stood at 5.08%, while the coupon rate on the 10Y notes registered 7.46%. New subscriptions exceeded existing maturities by LP 293.20B ($194.49M).