In today’s trading on the Money Market, we are witnessing a decline in total reported demand, which is a consequence of the approach of a new period for maintaining mandatory reserves.
Total reported demand today amounted to 77.98 million kuna, or about 43 percent less than on Friday. At the same time, the supply side found 257.98 million kuna, or about 3.5 percent less than at the end of the previous week.
The highest amount today, at 24.48 million kuna, was placed through term loans for a period of one month at an interest rate of 4.32 percent. Additionally, 2 million kuna was placed in loans for a period of one week at an interest rate of 3 percent.
Overnight loans were placed in the amount of only 1.5 million kuna, while the interest rate significantly increased from 0.51 to 3.5 percent.
The total kuna turnover on the Money Market thus reached 27.98 million kuna today, while 50 million kuna of demand remained unmet due to unaligned credit conditions among participants. The average interest rate rose from 1.45 to 4.18 percent.
– The last days of the mandatory reserve maintenance period are the reason for the further decline in demand on the Money Market. Despite the generous supply of short-term funds, due to the low interest rate, part of the demand remained unmet. Trading was mainly conducted in term loans for one week and one month, which also caused the average interest rate to rise to 4.18 percent – states the Money Market announcement.
