Romania’s central bank spends up to EUR 2 bln to steady RON amid political turmoil

Romania’s central bank is estimated to have spent between EUR 1.5 billion and EUR 2 billion in April to stabilise the local currency RON and manage capital outflows triggered by mounting political uncertainty, Economica.net reported, citing calculations based on official reserve data published by the National Bank of Romania (BNR). The interventions must have continued during the first days of May, when the local currency witnessed further weakening to record lows.

The bulk of the intervention in April appears to have been concentrated at the end of the month, when foreign investors reportedly reduced exposure to Romanian government bonds and equities. Pressure on the currency intensified sharply in the final days of April, coinciding with the announcement of a no-confidence motion against the government, which unsettled markets.