During the week ending November 26, 2015, broad Money M3 increased by LP 292B ($193.90M) to reach LP 184,172B ($122.17B). M3 registered a 4.95% yearly growth and a 3.82% year-to-date growth.
Similarly, M1 expanded by LP 77B ($51.01M) over the mentioned period, due to the increase in demand deposits by LP 147B ($97.5M) and a decline in money in circulation by LP 70B ($46.43M).
Total deposits (excluding demand deposits) grew by LP 215B ($142.89M) during the week ending November 26, given the LP 26B decrease in term and saving deposits in LP and the $160M expansion in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced an uptick from 57.89% on November 19 to 57.93% on November 26. 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 5th of December 2015, the Ministry of Finance (MoF) raised LP 70B ($46.43M), 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 54% share in total subscriptions, while the 1Y and 3M bills captured the remaining 37% and 9%, respectively. The yields on the 3M and 1Y bills stood at 4.39% and 5.08%, respectively, while the coupon rate on the 5Y notes stood at 6.74%.