The bank brought treasuries from 12 lenders and will sell them back December 24. Demand reached RON18.9 billion, down from RON20.3 billion last week. The interest rate was 5.25%, equal to the monetary policy rate.
Fund allocations are made on a pro-rata basis when auctions are capped so that banks may have asked for higher amounts to make sure they cover their needs.
The central bank started limiting its weekly repos in early October, in a bid to increase interest rates in the market and help strengthen the leu.
On the downside, however, the reduced liquidity makes it more difficult for the finance ministry to borrow at low yields. The ministry plans to sell RON700 million of one-year treasury bills later Monday. (EUR1=RON4.4675)