NBR calls for an adequate cash management
As the RRR-cutting measure took the market by surprise, NBR has also reduced the maturity of the auction-based repo operations to one week from one month.
“The longer the maturity of these operations, the less flexibility the NBR has in securing adequate cash management. Therefore, in view of a more responsible management, the institution reduced the maturity for these operations. The bank may rethink its decision and extend the maturity of REPO operations”, Croitoru explained.
Asked on any liquidity management issues in the past, the adviser to the Governor said no problems have been registered so far. “The liquidity management is not a simple process, and banks play an active role as well as the Ministry of Finance, central bank and all players who need it to be flexible”.
“The longer the maturity of these operations, the less flexibility the NBR has in securing adequate cash management. Therefore, in view of a more responsible management, the institution reduced the maturity for these operations. The bank may rethink its decision and extend the maturity of REPO operations”, Croitoru explained.
Asked on any liquidity management issues in the past, the adviser to the Governor said no problems have been registered so far. “The liquidity management is not a simple process, and banks play an active role as well as the Ministry of Finance, central bank and all players who need it to be flexible”.