During the week ending July 2 2015, broad Money M3 increased by LP 223B ($147.76M), to reach LP 181,469B ($120.38B) with a 4.67% yearly growth and a 2.30% y-t-d uptick. Similarly, M1 went up by LP 480.76B ($318.91M) due to the increase in money in circulation by LP 311B ($206.30M) and in demand deposits by LP 170B ($112.77M).
Total deposits (excluding demand deposits) went down by LP 258B ($171.15M), over the week, given the LP 200B decrease in term and saving deposits and the $39M contraction in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced a down-tick from 58.15% on June 25, to 58.05% on July 2. According to the Central Bank, the overnight interbank rate dropped from 3.00% at the end of April 2015 to 2.75% at the end of May 2015.
In the TBs auction held on the 2nd of July 2015, the Ministry of Finance raised LP 170.94B ($113.39M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, with a 79.65% share of total subscriptions, while the 3M and 1Y bills captured the remaining 10.78% and 9.57%, respectively. The 3M and 1Y bills yielded 4.39% and 5.08%, while the coupon rate of the 5Y notes stood at 6.74%. New subscriptions exceeded maturing bills by LP 67.09B ($44.50M).