During the week ending March 24, broad Money M3 grew by LP 293B ($194.36M) to reach LP 187,238B ($124.20B). M3 registered a 5.92% yearly growth and a 0.34% year-to-date uptick. Similarly, M1 widened by LP 327B ($216.92M) over the mentioned period, due to the increase in demand deposits by LP 310B ($205.64M) and in money in circulation by LP 17B ($11.28M). Total deposits (excluding demand deposits) decreased by LP 34B ($22.55M) during the week, given the $73M decline in deposits denominated in foreign currencies and the LP 76B growth in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate went down from 58.02% on the 17th of March to 57.87% on the 24th of March. According to the Central Bank, the overnight interbank rate dropped from 3.25% end of December 2015 to 3% in January 2016.
In the TBs auction held on the 7th of April, 2016, the Ministry of Finance (MoF) raised LP 114.33B ($75.84M), through the issuance of bills maturing in 3M and 1Y and notes maturing in 5Y. The highest demand was achieved on the 5Y notes, which grasped a 49.25% share of total subscriptions, while the 3M bills and 1Y bills captured the remaining shares of 2.63% and 48.12%, respectively. The discount rates on the 3M bills and 1Y bills stood at 4.39% and 5.08%, respectively. Meanwhile the coupon rate on the 5Y notes registered 6.74%. New subscriptions exceeded existing maturities by LP 21.05B ($13.96M).