Romania’s 3M ROBOR hits 4-month high on liquidity deficit

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, rose on Tuesday to 3.29 percent, the highest level since November 2, 2018, on liquidity shortages.

On Monday, 3-month ROBOR was 3.28 percent.

The 6-month ROBOR stood at 3.41 percent.

Compared with the end of 2018, the 3-month index rose by 0.27 percentage point, from 3.02 percent. The 3-month ROBOR index reached a record low of 0.68 percent in September 2016.

The highest rates are mainly due to temporary liquidity shortages, according to experts.

“The system looks to be still in a liquidity deficit which – absent the central bank’s injections – could keep cash rates at high levels for some time, before MinFin’s monthly spending kicks in,” ING Bank analysts said in a research note.

The Romanian government has introduced a tax on bank assets of 0.3 percent from January 1st, 2019, calculated at the current ROBOR 3M-6M level.