Commercial lenders wanted to sell state notes worth RON15.9 billion at the repo auction.
The central bank bought treasuries from 10 lenders and will sell them back November 5. The interest rate was set at 5.25% a year, equal to the monetary policy rate.
Last week, the central bank bought RON5 billion worth of state treasuries from seven commercial lenders at a similar interest rate. The banks wanted to sell paper worth RON12.73 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.
The leu strengthened to 4.543 versus the euro after the central bank’s announcement Monday, from 4.56 to the euro at open.
In the money market, weekly rates were at 5.16%-5.66% a year, little changed on the day. (EUR1=RON4.5442)