During the two week ending September 17, 2015, broad Money M3 increased by LP 452B ($299.97M), to reach LP 183,417B ($121.67B) posting a 5.00 % yearly growth and a 3.39% y-t-d uptick. In contrast, M1 regressed by LP 235B ($155.75M) over the past two weeks, due to the decline in demand deposits by LP 81B ($53.73M) and the LP 154B ($102.16M) drop in money in circulation.
Total deposits (excluding demand deposits) increased by LP 687B ($455.73M), in the two week period, given the $283M expansion in deposits denominated in foreign currencies and the LP 261B increase in term and saving deposits in LP. Over the above mentioned period, the broad money dollarization rate experienced a down tick from 57.92% on September 3, to 58.01% on September 17. 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 24h of September 2015, the Ministry of Finance raised LP 212B ($150.00M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, which grasped a 67% share of total subscriptions, while the 1Y and 3M bills captured the remaining 25% and 8%, respectively. The 3M and 1Y bills respectively yielded at 4.39% and 5.08%, while the coupon rate on the 5Y notes stood at 6.74%.