Romanian Central Bank ready to intervene on the market if currency imbalances

Romania’s Central Bank BNR is ready to intervene on the market in case of inter-banking imbalances, which is what happened last year, when the local currency did not depreciate, but rather lost some of its previous appreciation, said Romanian BNR Governor Mugur Isarescu. “The RON is a live currency and it reacts…it had prolonged periods of rest, but it does react… Imbalances may occur. Like the one in December. The Finance Ministry is making massive payments, so a lot of RON appears on the market. We don’t just look at these, we react,” said the Governor. However, he does not expect large change in the exchange rate, as the current account deficit is small and covered by foreign direct investments. The exchange rate announced by the BNR on Wednesday, January 7, was down to RON 4.496 per EUR, from RON 4.4982 per EUR the day before, which was the highest rating since March 2014. Other currencies in Central and Eastern Europe might appreciate in 2015, backed by the strong economies in the region. editor@romania-insider.com