During the week ending December 3, 2015, broad Money M3 increased by LP 85B ($56.19M) to reach LP 184,256B ($122.23B). M3 registered a 4.84% yearly growth and a 3.87% year-to-date growth.
Similarly, M1 expanded by LP 373B ($247.68M) over the mentioned period, due to the increase in demand deposits by LP 41B ($27.20M) and in money in circulation by LP 332B ($220.23M).
Total deposits (excluding demand deposits) decreased by LP 289B ($191.48M) during the week ending December 3, given the LP 53B decrease in term and saving deposits in LP and the $156M decline in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced an downtick from 57.93% on November 26 to 57.77% on December 3. 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 10th of December 2015, the Ministry of Finance (MoF) raised LP 221.98B ($147.25M), through the issuance of bills and notes maturing in 3M and 3Y. The highest demand was achieved on the 3Y notes, which grasped a 90.26% share of total subscriptions, while the 3M bills captured the remaining 9.74%. The yield on the 3M bills stood at 4.39%, while the coupon rate on the 3Y notes stood at 6.50%. Maturing T-bills exceeded new subscription by LP 143.55B ($95.22).