During the week ending on February 18th, broad Money M3 fell by LP 264B ($175.06M) to reach LP 185,750B ($123.22B). M3 registered a 5.01% yearly growth and a 0.45% year-to-date downtick.
Similarly, M1 regressed by LP 175B ($116.29M) over the mentioned period, due to the decrease in money in circulation by LP 130B ($86.24M) and LP 45B ($29.85M) drop in demand deposits.
Total deposits (excluding demand deposits) decreased by LP 88.60B ($58.78M) during the week, given the $172M contraction in deposits denominated in foreign currencies and the LP 170B increase in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate ticked down from 57.71% on the 11th of February to 57.65% on the 18th of February. According to the Central Bank, the overnight interbank rate increased from 3.00% by the end of November 2015 to 3.25% by December 2015.
In the TBs auction held on the February 25, 2016, the Ministry of Finance (MoF) raised LP 187.82B ($124.59M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, which grasped a 79.21% share of total subscriptions, while the 6M bills captured the remaining 20.79%. The discount rate on the 6M bills stood at 4.99%, while the coupon rate on the 3Y notes registered 6.50%. New subscriptions exceeded existing maturities by LP 107.68B ($71.43M).