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 30th of July 2015, the Ministry of Finance raised LP 111.20B ($73.76M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, with a 70.02% share of total subscriptions, while the 3M bills and 1Y notes captured 16.23% and 13.75%, respectively. The 3M and 1Y bills yielded 4.39% and 5.08%, respectively while the coupon rate of the 5Y notes stood at 6.74%. New subscriptions exceeded maturing bills by LP 28.69B ($19.03M).