Banknotes in circulation in Romanian currency leu increased by RON 5.3 billion (EUR 1.2 billion) last year and by EUR 136 million in February this year.

Cash went up to a historical high of EUR 9.4 billion in February, up 15% year-on-year, according to the National Romanian Bank (BNR).

Banknotes in circulation directly influence the black market evolution.

BNR injects liquidity into the market to encourage the economy, same as it did with the cut in the monetary policy interest rates, said economic analyst Aurelian Dochia, cited by local Ziarul Financiar.

He said that there is no other explanation for the increase in cash, as the Central Bank controls the amount of cash on the market.

BNR said that it can’t comment on this, one week before the monetary policy meeting due for March 31.

editor@romania-insider.com