During the week ending November 13, 2014, broad Money M3 fell by LP 41B ($27.49M), to reach LP 174,834B ($115.98B). M3 growth rate reached 6.32% year-on-year and 4.33% since year start. In contrast, M1 increased by LP 28B ($18.40M) due to the increase in money in circulation by LP 272B ($180.43M) and a decrease in demand deposits by LP 244B ($161.85M).
Total deposits (excluding demand deposits) fell by LP 69.18B ($45.89M), given the regression of deposits denominated in foreign currencies by $72M, while term and saving deposits in domestic currency rose by LP 39B. Over the above mentioned period, the broad money dollarization went down from 58.85% to 58.80%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of September 2014.
In the TBs auction held on the 20th of November 2014, the Ministry of Finance raised LP 138B ($91.54M), 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 69.19%, while the 3M and 6M bills accounted for 4.04% and 26.77%, respectively. The 3M and 6M bills yielded 4.39% and 4.87%, respectively, while the average coupon rate for 5Y notes stood at 6.74%. Maturing T-bills exceeded new subscriptions by LP 123.24B ($81.75M).