During the week ending March 10, broad Money M3 grew by LP 203B ($134.66M) to reach LP 186,503B ($123.72B). M3 registered a 5.29% yearly growth and a 0.05% year-to-date downtick.
However, M1 regressed by LP 19B ($12.60M) over the mentioned period, due to the decrease in demand deposits by LP 26B ($17.25M) and the increase in money in circulation by LP 7B ($4.64M)
Total deposits (excluding demand deposits) grew by LP 222B ($147.26M) during the week, given the $194M expansion in deposits denominated in foreign currencies and the LP 70B contraction in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate went up from 57.77% on the 3rd of March to 57.86% on the 10th of March. According to the Central Bank, the overnight interbank rate remained steady at December 2015’s rate of 3.25%.
In the TBs auction held on the 17th of March, 2016, the Ministry of Finance (MoF) raised LP 696.91B ($462.29M), through the issuance of bills maturing in 1Y and notes maturing in 5Y and 15Y. The highest demand was achieved on the 15Y notes, which grasped a 64.62% share of total subscriptions, while the 1Y bills and 5Y notes captured the remaining 34.28% and 1.1%, respectively. The discount rate on the 1Y bills stood at 5.08%, while the coupon rate on the 5Y and 15Y notes registered 6.74% and 7.90%, respectively. Existing maturities exceeded new subscriptions by LP 30.94B ($20.52M).