Broad Money M3 Expanded by $146M during the Week ending August 13

During the week ending August 13, 2015, broad Money M3 increased by LP 220B ($145.63M), to reach LP 182,09B ($120.79B) posting a 4.49% yearly growth and a 2.65% y-t-d uptick. In contrast, M1 decreased by LP 220.18B ($146.06M) due to the decrease in demand deposits by LP 103B ($68.33M) and the decline in money in circulation by LP 117B ($77.62M).

Total deposits (excluding demand deposits) increased by LP 440B ($291.68M), over the week, given the LP 151B growth in term and saving deposits in LP and the $191M expansion in deposits denominated in foreign currencies. Over the above mentioned period, the broad money dollarization rate experienced an uptick from 58.02% on August 6, to 58.11% on August 13. According to the Central Bank, the overnight interbank rate steadied at 2.75% at the end of June 2015.

In the TBs auction held on the 20th of August 2015, the Ministry of Finance raised LP 190B ($126.23M), through the issuance of bills and notes maturing in 6M and 3Y. The highest demand was achieved on the 3Y notes, with a 93.64% share of total subscriptions, while the 6M bills captured the remaining 6.36%. The 6M bills yielded 4.87%, while the coupon rate on the 3Y notes stood at 6.50%.

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