“The rates on the leu are very high,” one dealer told SeeNews.
Interest rates on overnight leu deposits jumped to an average of 18.89%/57.00%% on Thursday from 15.21%/53.28% on Wednesday, according to data from the country’s central bank, the BNR.
Interest rates jumped in the last few days, propelled by a sharp liquidity shortage as banks and companies prepared to meet payment deadlines this week, another dealer told SeeNews.
Commercial banks must pay minimum reserves with the central bank by the 23rd of each month. Companies operating in Romania have to make various payments to the state by the 25th, which leads to a rise in demand on the local interbank money market around those dates.