The central bank bought treasuries from 11 lenders and will sell them back October 8. The lenders wanted to sell state paper worth RON15.3 billion, but the central bank has capped its repo operation at RON6 billion in a move to drive overnight rates higher and help a weakening leu.
Last week, the central bank added RON12.6 billion to the market via a one-week repo.
The national currency fell to 4.592 versus the euro in early action Monday, but shortly after the central bank’s decision to limit repo lending it strengthened to 4.563 per euro.
In August, the central bank has limited its repo operations for four consecutive weeks. The move has helped strengthen the leu after interbank rates increased slightly, but it also led to higher yields at state treasury auctions.