During the week ending October 8, 2015, broad Money M3 declined by LP 16B ($10.85M), to reach LP 183,916B ($122.00B) posting a 5.12 % yearly growth and a 3.68% y-t-d uptick. Similarly, M1 dropped by LP 227B ($150.85M) over the mentioned period, due to the drop in demand deposits by LP 200B ($132.67M) and the LP 27B ($17.91M) contraction in money in circulation.
Total deposits (excluding demand deposits) increased by LP 211B ($140.00M) during the week ending October 8, given the LP 168B progression in term and saving deposits in LP and the $28M expansion in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced an uptick from 57.80% on October 1, to 57.83% on October 8. 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 15th of October 2015, the Ministry of Finance (MoF) raised LP 243B ($161.10M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, which grasped an 89.60% share of total subscriptions, while the 6M bills captured the remaining 10.40%. The 6M bills yielded 4.87%, while the coupon rate on the 3Y notes stood at 6.50%.