The foreign exchange reserves held by Romania’s National Bank (BNR) dropped by EUR 477 million in May, reaching EUR 35.48 billion.

This was due to the reduction in the minimum reserve requirements for the local banks’ foreign currency liabilities from 10% to 8%, according to BNR.

By comparison, foreign exchange reserves amounted to EUR 35.96 billion in April.

The inflows totaled EUR 541 million in May whereas the outflows reached EUR 1.01 billion.

On May 5, the central bank’s board of directors made the first major monetary policy decision in 2017. They reduced the minimum reserve requirements for foreign currency liabilities from 10% to 8%.

The gold reserve remained at 103.7 tons in May, but its value went down to EUR 3.76 billion, due to the decline in international gold prices. Thus, Romania’s international reserves (foreign currencies and gold) dropped to EUR 39.25 billion.

editor@romania-insider.com