During the week ending October 1, 2015, broad Money M3 declined by LP 35B ($23.40M), to reach LP 183,933B ($122.01B) posting a 5.12 % yearly growth and a 3.68% y-t-d uptick. Similarly, M1 dropped by LP 83B ($55.29M) over the mentioned period, due to the drop in demand deposits by LP 145B ($96.19M) and the LP 62B ($41.13M) expansion in money in circulation.
Total deposits (excluding demand deposits) increased by LP 48B ($31.89M) during the week ending October 1, given the LP 137B increase in term and saving deposits in LP and the $59M contraction in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 57.84% on September 24, to 57.80% on October 1. According to the Central Bank, the overnight interbank rate steadied at 2.75% at the end of August 2015.
In the TBs auction held on the 8th of October 2015, the Ministry of Finance raised LP 173B ($114.64M), 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 74.94% share of total subscriptions, while the 1Y and 3M bills captured the remaining 18.97% and 6.09%, 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%.