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January 23, 2022

BNR loans RON 6 bln to 11 banks

The National Bank of Romania (BNR) has loaned RON 6 bln (EUR 1.3 bln) to 11 banks through a repo operation. The banks had demanded RON 15.3 bln, Mediafax informs. The Central Bank once again capped the sum with which it loans the banks through repo operations after the RON/EUR exchange rate climbed to more than RON 4.59/EUR on the interbank market on Monday, heading towards the historic high.  BNR uses repo tenders to offer liquidity to commercial banks in exchange for state bonds, at a monetary policy interest rate of 5.25 per cent per year. The sums are loaned for a week’s time. The money is offered pro-rate, in relation to an index obtained by dividing the subscribed sums and the value presented by the Central Bank. Thus, when BNR announced a ceiling the banks bid higher values in order to make sure they receive as much as possible out of the sums sought. The four repo tenders that BNR organised in August had ceilings for the first time since 2008 and the RON partially benefitted from the Central Bank’s decision since the interest rates posted by the banks rose slightly.

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