Broad Money Increased by LP 219B during the Week Ending November 5

During the week ending November 5, 2015, broad Money M3 expanded by LP 219B ($145.27M), to reach LP 184,088B ($122.11B) posting a 5.18 % yearly growth and a 3.77% y-t-d uptick. Similarly, M1 increased by LP 145B ($96.39M) over the mentioned period, due to the progression in money in circulation by LP 306B ($202.99M) and the LP 161B ($106.80M) contraction in demand deposits.

Total deposits (excluding demand deposits) increased by LP 73.69B ($48.88M) during the week ending November 5, given the $30M expansion in deposits denominated in foreign currencies and the LP 29B growth in term and saving deposits in LP. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 57.73% on October 29 to 57.69% on November 5. According to the Central Bank, the overnight interbank rate increased from 2.75% at the end of August 2015 to 3.00% at end September.

In the TBs auction held on the 12th of November 2015, the Ministry of Finance (MoF) raised LP 214B ($141.96M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, which grasped 86.45% share of total subscriptions, while the 6M bills captured the remaining 13.55%. The 6M bills yielded at a level of 4.87%, while the coupon rate on the 3Y notes stood at 6.50%.

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