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.
This behavior is not new and every time this happens someone ends up in tears. You can read our view about where this “lovers’ quarrel” is headed at FLORIN CITU ADVISORY.
Florin Citu is the founder of FLORIN CITU ADVISORY , an independent economic research and consulting firm. More details will be available in English on our page soon. Until then please contact us at firstname.lastname@example.org