During the week ending July 9 2015, broad Money M3 increased by LP 111B ($73.96M), to reach LP 181,580B ($120.45B) with a 4.61% yearly growth and a 2.36% y-t-d uptick. In contrast, M1 decreased by LP 61B ($40.53M) due to the decrease in demand deposits by LP 190B ($126.03M) and the increase in money in circulation by LP 129B ($85.57M).
Total deposits (excluding demand deposits) went up by LP 173B ($114.49M), over the week, given the LP 247B growth in term and saving deposits and the $49M contraction in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced a down-tick from 58.05% on July 2, to 57.97% on July 9. 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 16th of July 2015, the Ministry of Finance raised LP 166.48B ($110.44M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, with a 79.39% share of total subscriptions, while the 3M and 1Y bills captured the remaining 10.90% and 9.71%, 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 63.03B ($41.82M).