Commercial lenders wanted to sell state notes worth RON12.73 billion at the repo.
The central bank bought treasuries from seven lenders and will sell them back October 29. The interest rate was set at 5.25% a year, equal to the monetary policy rate.
Last week, the central bank capped its repo at RON6 billion, despite a record demand from commercial lenders of RON21.4 billion. The move aimed to help strengthen the leu, after the latter fell toward 4.6 against the euro.
Central bank governor Mugur Isarescu said recently that limiting repos was a swifter, more efficient method to control the leu’s evolution in the market than modifying the main interest rates.
In August, the central bank has limited its repo operations for four consecutive weeks. The move has helped the leu as interbank rates increased slightly, but it also led to higher yields at state treasury auctions.
The Finance Ministry will reopen its 2015 foreign currency bond later Monday in a bid to raise EUR150 million. (EUR1=RON4.5757)