MoF Raised LP 302.40B in the Treasury Bills’ Auction Held on the 10th of March
During the week ending on March 3rd, broad Money M3 grew by LP 353B ($234.02M) to reach LP 186,300B ($123.58B). M3 registered a 5.07% yearly growth and a 0.16% year-to-date downtick.
Similarly, M1 regressed by LP 444B ($294.40M) over the mentioned period, due to the increase in money in circulation by LP 317B ($210.28M) and in demand deposits by LP 127B ($84.25M).
Total deposits (excluding demand deposits) dropped by LP 91.09B ($60.37M) during the week, given the LP 223B contraction in term and saving deposits and the $87M expansion in deposits denominated in foreign currencies.
Over the above mentioned period, the broad money dollarization rate went down from 57.81% on the 25th of February to 57.77% on the 3rd of March. According to the Central Bank, the overnight interbank rate remained steady at December 2015’s rate of 3.25%.
In the TBs auction held on the 10th of March, 2016, the Ministry of Finance (MoF) raised LP 302.40B ($200.59M), through the issuance of bills and notes maturing in 3M and 2Y. The highest demand was achieved on the 2Y notes, which grasped an 88.65% share of total subscriptions, while the 3M bills captured the remaining 11.35%. The discount rate on the 3M bills stood at 4.39%, while the coupon rate on the 2Y notes registered 5.84%. New subscriptions exceeded existing maturities by LP 279.04B ($185.10M).
