Today’s repo was capped at 4 billion lei (EUR890 million), lower than the RON5 billion and, respectively, RON6 billion ceilings imposed in the past two weeks.
The central bank bought treasuries from 13 lenders and will sell them back August 27. The commercial banks planned to sell RON15 billion worth of treasuries at today’s auction.
Last week, the central bank bought treasuries from 15 lenders through a one-week repurchase agreement operation, at an interest rate of 5.25% a year, equal to the monetary policy rate. The lenders had offered treasuries worth RON18 billion.
Market participants said the central bank’s decision to limit repo lending has helped strengthen the leu after interbank rates increased slightly.
Additionally, the central bank stepped up its interventions in the market and sold more euros to support the leu, which recovered from an historic low of 4.6481 versus euro set on August 3.
On Monday, the leu’s exchange rate weakened 0.2% to 4.4939 per euro.
In the money market, weekly rates were at 5%-5.5% a year, modestly up on the day.