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April 19, 2021

BNR invests 17 pc of Forex reserves in American securities

The National Bank of Romania (BNR) invested approx. 17 pc of the foreign exchange reserves, that is, roughly USD 8bln, in US bonds, according to Fin.ro. Thus, BNR continues to rely on American securities, despite recent unrest and despite Standard & Poor’s decision to downgrade the United States’ rating to “AA+”.

Nonetheless, the total value of US Government bonds that BNR is holding at the moment, namely, USD 8.04bln, is ebbing from the USD 8.42bln reported at the end of March. Since S&P downgraded USA’s rating, from “AAA” to “AA+”, 11 days ago, the yield of ten-year Treasury securities, deemed a reference value, has ebbed to a 2.03 pc-low, from the year’s record high of 3.77 pc. Thus, US bonds are about to report, in August, the highest monthly growth since December 2008.

At the end of July, BNR’s foreign exchange reserves amounted to EUR 32.68bln, ebbing from EUR 34.4bln on July 30, 2011. Considerable amounts were invested, also, in bonds issued in EUR by “AAA”-rated European countries, such as Germany, France and The Netherlands.

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