Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, slightly declined on Thursday to 3.02 percent, the lowest level since June 21, on higher liquidity in the market.
On Monday, 3-month ROBOR was 3.03 percent.
The 6-month ROBOR stood at 3.33 percent for the fifth day in a row.
Compared with the end of 2017, the 3-month index rose by 0.97 percentage point, from 2.05 percent.
Since the end of November, the National Bank of Romania has stopped injecting liquidity into the money market through a repo operation (government securities-backed lending to banks), a move designed to address liquidity shortage – and to cap interest rates in the market.
This new decline of money market rates is mainly due to higher liquidity in the market.
The 3-month ROBOR index reached a record low of 0.68 percent in September 2016.
In the same time, Romania’s currency, RON, declined by 0.1 percent on Thursday against the European single currency, the exchange rate rising to 4.6471/EUR.
Against the European single currency, Romania’s currency reached the all-time low of 4.6695/EUR on June 21, 2018.
US dollar gained 0.1 percent to 4.0744 RON.