The National Bank of Romania (BNR) granted yesterday a one-week loan to seven banks amounting to a total RON 1.657bln (EUR 380 M) in a repo auction, at the monetary policy rate of 6 pc a year, Mediafax reports. In such operations, BNR offers liquidity to merchant banks and takes over state bonds in return. The central bank granted another one-week loan to ten banks last Monday, amounting to RON 6.246bln (EUR 1.43bln) in a repo auction, anticipated at the time by the dealers, as BNR’s interventions on the foreign currency market sharply reduced liquidity in the system.
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