The bank bought treasuries from 17 lenders at the monetary policy rate of 5.25% a year and will sell them back on December 31.
The demand was more than six-times higher than the central bank’s ceiling, at RON25.8 billion.
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 money market Monday morning, overnight rates rose to 6.9%-7.4% a year, from 5.7%-6.2% a year Friday, as the demand for lei is higher following Thursday’s state bond auction, when the Finance Ministry sold paper worth of RON3.4 billion. (EUR1=RON4.4231)