The central bank bought treasuries from 10 lenders at today’s auction and will sell them back August 13. The commercial banks had offered treasuries worth RON15.15 billion.
The number of state treasuries commercial banks are allowed to use as guarantee for operations on the monetary market was recently increased to five from three. Following the move, more lenders have been using the central bank’s repo facility to attract money.
Last week, the central bank lent RON12.1 billion to five commercial banks through the facility at an interest rate of 5.25% a year, equal to the monetary policy rate.
In the money market Monday, weekly rates rose to 5.2%-5.7% a year, from 4.8%-5.3% a year Friday. (EUR1=RON4.574)