MoF Raised LP 145.57B in the TBs Auction Held on the 31st of December
During the three weeks ending December 24, 2015, broad Money M3 increased by LP 1,925B ($1.28B) to reach LP 186,182B ($123.50B). M3 registered a 5.20% yearly growth and a 4.95% year-to-date growth.
Similarly, M1 expanded by LP 549B ($363.86M) over the mentioned period, due to the increase in demand deposits by LP 489B ($324.38M) and in money in circulation by LP 59B ($39.14M).
Total deposits (excluding demand deposits) grew by LP 1,376.78B ($913.28M) during the three weeks ending December 24, given the LP 197B increase in term and saving deposits in LP and the $783M expansion in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate experienced a downtick from 57.93% on November 26 to 57.77% on December 3. According to the Central Bank, the overnight interbank rate steadied at 3.00% by the end of October 2015.
In the TBs auction held on the 31st of December 2015, the Ministry of Finance (MoF) raised LP 145.57B ($96.56M), through the issuance of bills and notes maturing in 3M, 1Y and 5Y. The highest demand was achieved on the 5Y notes, which grasped a 68% share of total subscriptions, while the 3M and 1Y bills captured the remaining 8% and 24%, respectively. Yields on the 3M bills and 1Y bills stood at respective levels of 4.39% and 5.08%, while the coupon rate on the 5Y notes stood at 6.74%.
