The National Bank of Romania’s foreign exchange reserves stood at EUR 33.06 billion on December 31, 2018, 1.6% more than one month earlier (EUR 32.53 billion) but 1.3% less than at the end of 2017 (EUR 33.49 billion), BNR informed.

The reserves to short-term debt ratio has dropped even more significantly as the short-term debt advanced, latest data (at the end of October) showed. The forex reserves thus increased by EUR 0.53 billion in December, but decreased by EUR 0.43 billion over the past 12 months, since the end of 2017.

In December, the reserves were boosted by the issuance of bonds with nominal value of EUR 251.5 million on the domestic market and by the inflows into the European Commission’s account, among others, the central bank explained.

The payments due on the foreign currency-denominated public and publicly guaranteed debt amounted in December to only EUR 137 million. However, in January the central bank will have to pay EUR 1.04 billion on the behalf of the Government as foreign currency debt service.

Romania’s stock of monetary gold remained unchanged at 103.7 tonnes, or EUR 3.74 billion at the prevailing gold price at the end of 2018 (EUR 3.61 billion at the end of 2017).

At the end of October 2018 (latest data available), the ratio of the national bank’s foreign exchange reserves to short-term external debt by remaining maturity came in at 75.3% percent, against 88.5% one year earlier. By the end of 2018, the foreign currency reserves rose by 2.1% (versus October) and the ratio might have improved marginally.

editor@romania-insider.com

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