During the 2-week period ending June 4 2015, broad Money M3 increased by LP 836B ($554.64M), to reach LP 181,421B ($120.35B) with a 5.30% yearly growth and a 2.27% y-t-d uptick. Similarity, M1 went up by LP 238B ($158.06M) due to the increase in currency in circulation by LP 251B ($166.50M) offsetting the LP 13B ($8.62M) decrease in demand deposits.
Total deposits (excluding demand deposits) grew by LP 597.85B ($396.58M), over the 2-weeks, given the expansion of deposits denominated in foreign currencies by $208M in addition to the increase in term and saving deposits in domestic currency by LP 285B. Over the above mentioned period, the broad money dollarization rate experienced a down-tick from 58.37% on May 21, to 58.28% on June 4. According to the Central Bank, the overnight interbank rate went up to 3.00% at the end of April 2015.
In the TBs auction held on the 11th of June 2015, the Ministry of Finance raised LP 630B ($417.91M), through the issuance of bills and notes maturing in 6M, 2Y and 7Y. The highest demand was achieved on the 2Y notes, with a 47.62% share of total subscriptions, while the 7Y notes and 6 month bills captured the remaining 43.49% and 8.89%. The 6M bills yielded 4.87% while the coupon rate of the 2Y notes 7Y notes stood at 5.84% and 7.08%.