Broad Money Reached $117.47B by March 12

During the week ending March 12 2015, broad Money M3 increased by LP 223B ($148.00M), to reach LP 177,085B ($117.47B) with a 4.97% year-on-year growth and 0.2% year-to-date decrease. Furthermore, M1 declined by LP 162B ($107.75M) due to a decrease in demand deposits by LP 54B ($35.82M) and a drop in circulated money by LP 108B ($71.64M).

Total deposits (excluding demand deposits) went down by LP 60.67B ($40.25M), given the contraction of deposits denominated in foreign currencies by $142M while term and saving deposits in domestic currency augmented by LP 153B. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 58.35% the prior week to 58.30%. According to the Central Bank, the overnight interbank rate remained constant at 2.75% at the end of January 2015.

In the TBs auction held on the 19th of March 2015, the Ministry of Finance raised LP 567.12B ($376.20M), through the issuance of bills and notes maturing in 6M, 2Y and 10Y. The highest demand was achieved on the 10Y notes which grasped a share of 90.33% of total subscription, while the 2Y notes and 6M bills contributed to the remaining shares of 7.61% and 2.06%, respectively. Furthermore the 6M bills yielded 4.87% while the average coupon rate for the 2Y and 10Y notes stood at 5.84% and 7.46%, respectively. New subscriptions exceeded Maturing T-bills by LP 413.39B ($274.22M).

Leave a Reply

Your email address will not be published. Required fields are marked *