BNR to release EUR 500 mln into market following cut in reserve requirement

Newsroom 02/07/2014 | 17:58

The National Bank of Romania (BNR) will release to the banks approximately EUR 500 million after cutting the reserve requirement on forex-denominated liabilities of credit institutions by two percentage points, BNR governor Mugur Isarescu declared on Tuesday, quoted by Agerpres.

‘For your calculations, one percentage point of the Forex reserve requirement is EUR 200 – 250 million. The two percentage points represent about EUR 500 million. (…) Some EUR 800 – 900 million have been released since the beginning of the year by the combined reduction of 4 percent,’ Isarescu explained.

BNR’s board decided in its meeting on Tuesday to keep the monetary policy rate unchanged at 3.5 percent / year and lower the minimum reserve requirement ratio on forex-denominated liabilities of credit institutions to 16 percent down from 18 percent to apply over July 24 – Aug. 23, 2014.

The BNR board also decided to keep unchanged at 12 percent the minimum reserve requirement ratio on leu-denominated liabilities.

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