Romania’s National Bank (BNR) drew another RON 18 billion (EUR 3.9 billion) worth of deposits from local commercial banks on Monday, April 23, in the second such operation this year, local Profit.ro reported.

This moved the 3-month interbank interest rate ROBOR 3M from 2.13% per year on Friday, to 2.22% per year on Monday, the highest level in over five months. The central bank aims to keep the ROBOR close to its monetary policy rate of 2.25% per year.

By drawing deposits from local banks, the central bank reduces the liquidity on the market and indirectly increases the cost of loans. The measures are aimed at curbing the inflation rate, which reached 5% in March.

BNR drew another RON 18.66 billion from local banks on April 16.

editor@romania-insider.com