During the week ending July 16 2015, broad Money M3 increased by LP 182B ($121.01M), to reach LP 181,763B ($120.57B) with a 4.59% yearly growth and a 2.46% y-t-d uptick. In contrast, M1 decreased by LP 286B ($189.85M) due to the decrease in demand deposits by LP 113B ($74.96M) and the decline in money in circulation by LP 173B ($114.76M).
Total deposits (excluding demand deposits) went up by LP 468B ($310.87M), over the week, given the LP 94B growth in term and saving deposits and the $248M expansion in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced an up-tick from 57.97% on July 9, to 58.12% on July 16. 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 23rd of July 2015, the Ministry of Finance raised LP 299.77B ($198.85M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, with an 84.29% share of total subscriptions, while the 6M bills captured the remaining 15.71%. The 6M bills yielded 4.87% while the coupon rate of the 3Y notes stood at 6.50%. Maturing bills exceeded new subscriptions by LP 105.81B ($70.19M).