Total Deposits Rose to $283.23M by January 1st 2015

During the week ending January 1, 2015, broad Money M3 increased by LP 342B ($227.01M), to reach LP 177,298B ($117.61B) with a 5.81% year-on-year growth. In contrast, M1 retreated by LP 85B ($56.22M) due to the drop in demand deposits by LP 171B ($113.43M), while money in circulation increased by LP 86B ($57.05M).

Total deposits (excluding demand deposits) rose by LP 426.97B ($283.23M), given the rise in deposits denominated in foreign currencies and term and saving deposits in domestic currency by $156M and LP 191B, respectively. Over the above mentioned period, the broad money dollarization rate remained almost stable, moving from 58.65% last week to this week’s 58.67%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of October 2014.

In the TBs auction held on the 8th of January 2015, the Ministry of Finance raised LP 266.10B ($176.52M), through the issuance of bills maturing in 6M, and 3Y notes. The highest demand was achieved on the 3Y notes that took a share of 87.97%, while the 6M bills accounted 12.03%. The 6M bills yielded 4.87%, while the average coupon rate for the 3Y notes stood at 6.50%. Maturing T-bills exceeded new subscriptions by LP 31.78B ($21.08M).

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