The bank brought treasuries from 17 lenders and will sell them back December 10. Demand reached RON29.45 billion, up from RON26.5 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. The low liquidity drove weekly rates above 6% last week, while the leu firmed to 4.5059 against the euro, the highest level in two and a half months.
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 RON500 million of one-year treasury bills later Monday. (EUR1=RON4.5191)