Romania’s Forex reserves drop by EUR 1.1 bln in Nov 2019

The foreign currency reserves held by Romania’s National Bank (BNR) decreased by EUR 1.1 billion in November, to EUR 33.8 bln at the end of the month.

Compared to the end of November 2018, the forex reserves were EUR 1.3 bln (4%) higher.

In terms of months of imports of goods and services and short-term debt, the reserves have slightly decreased, as well as the reserves-to-GDP ratio (since exports, short-term debt service and GDP increased nominally faster).

The outflows from BNR’s accounts reached EUR 2.98 bln, including some EUR 1.57 bln that went to the repayment of Eurobonds on the behalf of the Finance Ministry.

Meanwhile, the EUR 1.89 bln inflows included EUR 670 mln from a bond issue denominated in euro on the local market and by inflows of funds from the European Union budget.

Net of the Eurobond repayment, the outflows amounted to EUR 1.42 bln, most of which was probably used for interventions on the foreign exchange market by the central bank, to stop the local currency’s weakening.

Unofficial market sources said BNR sold some EUR 1.2 bln, out of which EUR 0.5 bln in only one day (November 28).

(Photo: Pixabay)