MoF Raised LP 282.45B in the TBs Auction Held on the 25th June

During the week ending June 11 2015, broad Money M3 decreased by LP 229B ($152.07M), to reach LP 181,191B ($120.19B) with a 5.16% yearly growth and a 2.14% y-t-d uptick. Similarly, M1 went down by LP 90B ($59.79M) due to the decrease in currency in circulation by LP 88B ($58.37M) and the decline in demand deposits by LP 3B ($1.99M).

Total deposits (excluding demand deposits) fell by LP 139.11B ($92.28M), over the week, given the contraction of deposits denominated in foreign currencies by $208M while term and saving deposits in local currency increased by LP 174B. Over the above mentioned period, the broad money dollarization rate experienced a down-tick from 58.28% on June 4, to 58.18% on June 11. According to the Central Bank, the overnight interbank rate remained at 3.00% at the end of April 2015.

In the TBs auction held on the 25th of June 2015, the Ministry of Finance raised LP 282.45B ($187.36M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, with a 88.73% share of total subscriptions, while the 6M bills captured the remaining 11.27%. The 6M bills yielded 4.87%, while the coupon rate of the 3Y notes stood at 6.50%. Maturing bills exceeded new subscription by LP 148.30B ($98.38M).

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