During the week ending April 14, broad Money M3 increased by LP 383B ($254.12M) to reach LP 187,647B ($124.48B). M3 registered a 6.01% yearly growth and a 0.56% year-to-date uptick. In contrast, M1 declined by LP 78B ($51.98M) over the mentioned period, due to the decrease in money in circulation by LP 113B ($74.96M) and an increase in demand deposits by LP 35B ($23.22M). Total deposits (excluding demand deposits) grew by LP 461.45B ($306.10M) during the week, given the $96M growth in deposits denominated in foreign currencies and the LP 317B progress in term and saving deposits.
Over the above mentioned period, the broad money dollarization rate went down from 57.92% on the 7th of April to 57.88% on the 14th of April. 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 14th of April, 2016, the Ministry of Finance (MoF) raised LP 954.49B ($633.23M), through the issuance of bills maturing in 6M and notes maturing in 2Y and 10Y. The highest demand was achieved on the 10Y notes, which grasped a 74.22% share of total subscriptions, while the 6M bills and 2Y notes captured the remaining shares of 7.19% and 18.59%, respectively. The discount rates on the 6M bills stood at 4.87%. Meanwhile the coupon rate on the 2Y and 10Y notes registered 5.84% and 7.46%, respectively. New subscriptions exceeded existing maturities by LP 201.78B ($133.85M).