Romania’s 3M ROBOR reaches almost 4-month high on lower funding in the market

Sorin Melenciuc 21/02/2019 | 11:08

Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, rose on Wednesday to 3.28 percent, the highest level since November 2, 2018, on liquidity shortages.

On Wednesday, 3-month ROBOR was 3.25 percent.

The 6-month ROBOR increased to 3.41 percent, the highest level since November 27, 2018.

Compared with the end of 2018, the 3-month index rose by 0.26 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 at the end of the reserve maintenance period, as some players are becoming more anxious and are paying up to secure funding needs, according to experts.

“The overnight and tom-next implied yields reached almost 8.00 percent yesterday and it seems we will end up this reserve period with rates going through the roof,” ING Bank analysts said in a research note.

“Still, it’s rather impressive that the 9M-1Y segment hasn’t been really following the front end. The 3.75 percent implied yield in 1Y looks quite reasonable when compared to the rest of the curve,” they added.

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.

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