ING Bank estimates that the National Bank of Romania (BNR) sold between EUR 700 M and EUR 1 bln in the second half of May, to prevent the devaluation of the national currency beyond 4.14 RON/EUR, Mediafax reports. Taking into account the purchases of European currency made in the first half of May, ING estimates that BNR had net sales between EUR 500 M and EUR 600 M, reads an analysis released yesterday by the bank. “Foreign currency reserves soared by EUR 600 M, to EUR 32.7 bln, but in fact BNR probably sold euros to keep the exchange rate at 4.13 RON/EUR,” believe the analysts of ING Bank. The Finance Ministry borrowed EUR 939.2 M in May, by selling on the local market state bonds in foreign currency, maturing in three years. The operation significantly contributed to the increase of the foreign currency reserve, and the appreciation of the USD and GBP against the European currency brought another EUR 400 M, according to ING calculations. Thus, ING estimates that BNR ran net sales in May, after net purchases worth EUR 200 M in April. The RON continued its slight devaluation early in yesterday’s trading session, with quotations above 4.1350 RON/EUR, on a quiet market with low transfer volumes. BNR announced Wednesday a reference exchange rate of 4.1297 RON/EUR, 0.89 Ban (0.0089 RON) higher than the previous day.
