Romanias central bank injects EUR 350mn in the money market.

By bne IntelliNews August 29, 2011
The central bank of Romania provided the banks RON 1.5bn (EUR 350mn) under a repo-type operation at the end of last week, after injecting RON 5.5bn in the money market to calm the short term interest rates one week earlier, according to latest data provided by the central bank. The repo-type deals were with a standard policy rate of 6.25% and the maturity of the funds provided in exchange for the Treasury bills was one week. Bank experts explained part of the interest rate rise in mid-September with the required reserves build-up period. The Treasury failed to drain any funds upon its 12-month auction on August 22, due to the high yields required by banks. Nonetheless, the trend for higher interest rates was visible also for longer maturities when the Treasury had to accept an average yield of 7.59% for its 10-year bond issued last week, after 7.45-7.46% in Jun-Jul.

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