MoF Raised LP 203.37B in the Treasury Bills’ Auction Held on the 24th of March

During the week ending March 17, broad Money M3 grew by LP 442B ($293.40M) to reach LP 186,945B ($124.01B). M3 registered a 5.65% yearly growth and a 0.19% year-to-date uptick. However, M1 regressed by LP 125B ($83.13M) over the mentioned period, due to the decrease in demand deposits by LP 3B ($1.99M) and the faster drop in money in circulation by LP 122B ($80.92M). Total deposits (excluding demand deposits) grew by LP 567.62B ($376.53M) during the week, given the $362M expansion in deposits denominated in foreign currencies and the LP 22B growth in term and saving deposits.

Over the above mentioned period, the broad money dollarization rate went up from 57.86% on the 10th of March to 58.02% on the 17th 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 24th of March, 2016, the Ministry of Finance (MoF) raised LP 203.37B ($135.10M), through the issuance of bills maturing in 6M and notes maturing in 3Y. The highest demand was achieved on the 3Y notes, which grasped a 91.77% share of total subscriptions, while the 6M bills captured the remaining 8.23%. The discount rate on the 6M bills stood at 4.99%, while the coupon rate on the 3Y notes registered 6.50%. Existing maturities exceeded new subscriptions by LP 87.40B ($57.98M).

 

 

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