“Taking into account the budget payments at the end of the week, overnight interest rates may set at 2%, which means we should probably expect a large repo operation next Monday,“ ING analysts said in a report.
August 31, Romania’s central bank lent almost 1.9 billion lei to three commercial banks via a repurchasing agreement operation, which was a five-month high.
Between June 30 and August 10, the central bank injected Romanian lei via repo operations on a weekly basis.
In a repo operation, the central bank buys government treasuries from the banks that need funding, and sells them back after a short period, usually a week.
(English version by Manuela Panescu)