During the week ending September 4, 2014, broad Money M3 added by LP 455B ($30.18M), to reach LP 174,657 B ($115.86B). M3 growth rate reached 6.97% year-on-year and 4.23% since year start. Likewise, M1 progressed by LP 163B ($108.12M) due to the increase in money in circulation by LP 311B ($206.30M), while demand deposits dropped by LP 148B ($98.18M).
Total deposits (excluding demand deposits) grew by LP 292B ($193.67M), given the rise in term and saving deposits in domestic currency by LP 170B, while deposits denominated in foreign currencies increased by $81M. Over the above mentioned period, the broad money dollarization went down from 59.10% to 59.02%. 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 4th 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).