Quick Note on the REPO stand-off

Banks want more, more, more (think of Billy Idol song)

Fear of capital flight makes NBR a stingy central bank. For the REPO operation today the local banks were looking to borrow 24 billion RON (blue line) at 5.25% for 7 days. The NBR saw through that and only accepted 6 billion RON worth of RON denominated bonds.

Nu sunt de acord cu Guvernatorul BNR

A facut ceva valva <a href="Florin Citu a infiintat FLORIN CITU ADVISORY , firma independenta de servicii financiare care ofera analiza economica si consultanta pentru institutii publice, private si investitori. Mai multe detalii pe site-ul firmei.” target=”_blank”>declaratia Guvernatorului BNR, Dl. Mugur Isarescu, care spunea ca limitarea lichiditatii introduse in piata monetara prin operatiunile de REPO reprezinta un mod mai eficient de a controla/influenta rata de schimb. Eu nu sunt de aceeasi parere.

Guvernatorul valideaza concluziile unui raport FCA

In FINANCIARIA 26.08.2012 FLORIN CITU ADVISORY arata ca BNR controleaza evolutia cursului de schimb prin intermediul operatiunilor de REPO.

Politica BNR si deprecierea RON

Leul s-a depreciat constant din 1990 exceptie facand perioada 2004-2007. Pana in 2004 deprecierea a fost instrumentata de BNR. Din 2009 BNR a intervenit in sensul invers de stopare a deprecierii RON fata de EUR. A avut succes pana in ultima parte a lui 2011. In acelasi timp deprecierea inceputa in 2011 seamana foarte mult cu cea pe care o facea BNR pana in 2004. A depreciat BNR voit leul in ultimele 10 luni?

About Romanian interest rates

As my professional site is not up yet, here is a type of presentation that subscribers will have access to among other products and services (the site will be in both English and Romanian).

The Romanian money supply is actually falling

I am working on a presentation on the Romanian interest rates and I thought to share the following graph with you. It shows the overnight deposits (OD) at the NBR versus overnight deposits at the BNR minus the REPO operations. Why is this important?