Total Deposits Descended to LP 189.92B by January 29
During the week ending January 29, 2015, broad Money M3 decreased by LP 145B ($95.86M), to reach LP 176,106B ($116.82B) with a 5.29% year-on-year growth. In contrast, M1 gained LP 45B ($30.13M) due to the reduction in money in circulation by LP 51B ($33.83M) while demand deposits rose by LP 96B ($63.68M).
Total deposits (excluding demand deposits) decreased by LP 189.92B ($125.98M), given the decline of deposits denominated in foreign currencies by $182M. Meanwhile, term and saving deposits in domestic currency edged up by LP 84B. Over the above mentioned period, the broad money dollarization rate experienced a downtick from 58.59% the prior week to 58.48%. According to the Central Bank, the overnight interbank rate stood at 2.75% at the end of November 2014.
In the TBs auction held on the 5th of February 2015, the Ministry of Finance raised LP 323.54B ($214.62M), through the issuance of bills maturing in 6M and 3Y notes. The highest demand was achieved on the 3Y notes that took a share of 82.20%, while the 6M bills accounted for 17.80%. The 6M bills yielded 4.87%, while the average coupon rate for the 3Y notes stood at 6.50%. Maturing T-bills exceeded new subscriptions by LP 204.31B ($135.53M).
