The foreign exchange buffer of the ministry of finance has dropped to EUR 3.6 bln at the end of 2021 from EUR 6.63 bln one year earlier, according to calculations compiled by Profit.ro.

The finding is in line with the below-target volume of Eurobonds issued last year: EUR 7 bln instead of EUR 10 bln target.

The political turmoil in Q4 prevented Treasury from tapping the foreign markets. But in January-February, Romania already issued Eurobonds in two rounds.

The forex buffer thus accounts for only 1.5 months of the gross financing requirement at the end of 2021, according to Profit.ro, indeed far from the four-month safe benchmark targeted by the Government since the buffer was set up in 2010. The situation must have improved in the meanwhile, though.

A similar situation, but not so serious, occurred in 2018 when the foreign exchange reserve covered only 2.6 months of the gross financing requirement.

For 2022, four months of gross financing needs account for RON 48.4 bln (EUR 9.8 bln), while last year, it was RON 45.4 bln (EUR 9.2 bln).

andrei@romania-insider.com

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