Broad Money Declined by LP 255B During the 2-Week Period Ending October 22

During the 2 weeks ending October 22, 2015, broad Money M3 declined by LP 255B ($169.45M), to reach LP 183,661B ($121.83B) posting a 5.00 % yearly growth and a 3.53% y-t-d uptick. Similarly, M1 dropped by LP 334B ($221.57M) over the mentioned period, due to the drop in demand deposits by LP 115B ($76.29M) and the LP 219B ($145.27M) contraction in money in circulation.

Total deposits (excluding demand deposits) increased by LP 79B ($52.12M) during the 2 weeks ending October 22, given the LP 150B progression in term and saving deposits in LP and the $47M expansion in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced an uptick from 57.83% on October 8 to 58.87% on October 22. 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 22nd of October 2015, the Ministry of Finance (MoF) raised LP 833B ($55.26M), through the issuance of bills and notes maturing in 6M, 2Y and 10Y. The highest demand was achieved on the 10Y notes, which grasped 45.74% share of total subscriptions, while the 2Y notes and 6M bills captured the remaining 32.53% and 21.73%, respectively. The 6M bills yielded 4.87%, while the coupon rate on the 2Y and 10Y notes stood at respective levels of 5.84% and 7.46%.

 

 

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