Commercial lenders wanted to sell state notes worth RON15.59 billion at the repo auction.
The central bank bought treasuries from 11 lenders and will sell them back November 12. The interest rate was set at 5.25% a year, equal to the monetary policy rate.
Last week, the central bank bought RON4 billion worth of state treasuries from seven commercial lenders at a similar interest rate. The banks wanted to sell paper worth RON15.9 billion.
Central bank governor Mugur Isarescu said recently that limiting repos was a swift, efficient method to control the leu’s evolution in the market and prevent it to weaken too much against the euro. The move is more effective than modifying the key interest rate, he added.
In the money market, weekly rates were stable at 5%-5.5% a year. (EUR1=RON4.5209)