In June 2020, the National Bank of Romania – BNR and the European Central Bank – ECB set up a repo line meant to inject liquidity in the market whenever needed. The arrangement was set up in the context of the potential market fluctuations because of the crisis generated by COVID-19, and it was initially agreed to remain in place until end-2020 or as long as needed.
According to the agreement, under the repo line the BNR is able to borrow up to €4.5 billion from the ECB. The maximum maturity of each drawing is three months.
Now, the National Bank of Romania asked for the agreement to be prolonged, in the same terms, until June 2021. It means that, when needed, BNR will be able to inject liquidity in the market such as for protecting the national currency, as it did in the past.
In July, the international reserves of the National Bank of Romania reached €36.2 billion.
Photo source: Visit Bucharest Today!