ZAGREB, April 6 (Hina) – The Croatian National Bank (HNB) on Monday released HRK 1.52 billion for banks through a regular operation for a term of one week, similar to last week’s auction.
With the regular operation, the central bank is offering additional liquidity for banks for a period of one week and today’s amount is significantly higher than that offered last week, when the banks requested HRK 350 million which the central bank provided.
Last week, the HNB placed HRK 350 million for banks through a regular operation at an interest rate of 0.05% with a maturity date of April 8.
The HNB on Monday received applications from banks for an additional HRK 1.52 billion at this week’s regular auction. The settlement date is set for April 8 and a maturity of April 15. Interest is 0.05%.
Increasing the liquidity of the banking system is part of the measures that the HNB is undertaking with the aim of maintaining exchange rate stability during the crisis caused by the coronavirus epidemic, the HNB said in a brief press release.
In mid-March, the HNB released HRK 3.8 billion through a structural operation for a five-year term and HRK 750 million through a regular operation for a term of one week. The interest rate then was 0.30%, however at an auction held just one week later the interest rate fell to 0.05% and has remained stable since then.
The central bank has taken other measures aimed at increasing liquidity in the banking system through the purchase of domestic bonds.
At two auctions in mid-March, the HNB purchased domestic bonds in the amount of HRK 4.3 billion, which was the first time the central bank has taken this action.
In the second half of March, the HNB decreased the rate of mandatory reserves, releasing an additional HRK 10.5 billion for banks.
In an effort to maintain exchange rate stability, the HNB intervened five times in March, selling a total of € 2.25 billion to banks.
(€1 = HRK 7.624487)