MoF Raised LP 404.04B in the Treasury Bills’ Auction Held on the 28th of January

During the third week of 2016 ending January 21st, broad Money M3 decreased by LP 116B ($76.69M) to reach LP 185,728B ($123.20B). M3 registered a 5.02% yearly growth and a 0.47% year-to-date downtick.

Contrarily, M1 grew by LP 48B ($31.69M) over the mentioned period, due to the increase in demand deposits by LP 132B ($87.56M) exceeding the LP 84B ($55.72M) decrease in money in circulation.

Total deposits (excluding demand deposits) dropped by LP 163.38B ($108.38M) during the week ending January 21st, given the $129M contraction in  deposits denominated in foreign currencies, that offset the LP 31B increase in term and saving deposits in LP.

Over the above mentioned period, the broad money dollarization rate ticked down from 57.84% on the 14th of January, to 57.78% on the 21st of January. According to the Central Bank, the overnight interbank rate steadied at 3.00% by the end of October 2015.

In the TBs auction held on the 28th of January 2016, the Ministry of Finance (MoF) raised LP 404.04B ($268.02M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, which grasped a 74.89% share of total subscriptions, while the 6M bills captured the remaining 25.11%. The discount rate on the 6M bills stood at 4.99%, while the coupon rate on the 3Y notes was 6.50%. New subscriptions exceeded existing maturities by LP 271.58B ($180.15M).



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