During the week ending September 3, 2015, broad Money M3 increased by LP 413B ($274.05M), to reach LP 182,965B ($121.37B) posting a 4.93% yearly growth and a 3.14% y-t-d uptick. Similarly, M1 expanded by LP 467B ($309.55M) over the week, due to the ascent in demand deposits by LP 150B ($99.50) and the LP 317B ($210.28M) increase in money in circulation.
Total deposits (excluding demand deposits) decreased by LP 54B ($35.50M), over the week, given the $147M contraction in deposits denominated in foreign currencies offsetting the LP 168B expansion in term and saving deposits in LP. Over the above mentioned period, the broad money dollarization rate experienced a down tick from 58.18% on August 27, to 57.92% on September 3. According to the Central Bank, the overnight interbank rate steadied at 2.75% at the end of July 2015.
In the TBs auction held on the 10th of September 2015, the Ministry of Finance raised LP 211B ($139.68M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, which grasped 86.09% share of total subscriptions, while the 1Y and 3M bills captured the remaining 9.25% and 4.66%, respectively. The 3M and 1Y bills respectively yielded 4.39% and 5.08%, while the coupon rate on the 5Y notes stood at 6.74%.