Total deposits grew by LP 510B in week ending September 11th

During the week ending September 11, 2014, broad Money M3 added by LP 378B ($251M), to reach LP 175,035 B ($116.11B). M3 growth rate reached 7.16% year-on-year and 4.45% since year start. However, M1 regressed by LP 132B ($87.5M) due to the decrease in money in circulation by LP 98B ($65M) and in demand deposits by LP 34B ($22.5M).

Total deposits (excluding demand deposits) grew by LP 510B ($338.45M), given the rise in term and saving deposits in domestic currency by LP 69B, and in deposits denominated in foreign currencies by $293M. Over the above mentioned period, the broad money dollarization went up from 59.02% to 59.14%. According to the Central Bank, the overnight interbank rate dropped from 9.00% end of June 2014 to 2.75% end of July.

In the TBs auction held on the 11th of September 2014, the Ministry of Finance raised LP 215.20B ($142.75M), through the issuance of bills maturing in 3M and 6M, and 5Y notes. The highest demand was achieved on the 5Y notes that took a share of 52.21%, while the 3M and 6M bills accounted for 6.61% and 41.18% respectively. The 3M and 6M bills yielded 4.39% and 4.87%, respectively. Meanwhile the average coupon rate for the 5Y notes stood at 6.74%. New subscriptions exceeded Maturing T-bills by LP 130.37B ($86.48 M).

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