National currency continues its slight depreciation in the first part of the day, so that the EU reference for EUR published by National Bank of Romania (BNR) advanced to RON 4.6907 for EUR 1, returning to over 4.6 units, only after three days. During the previous session, the rate went up to RON/EUR 4.5885. For USD, the reference rate advanced by RON 0.0243 to USD /RON 3.7528 and the rate for CHF advanced by RON 0.0145 to RON/CHF 3.8355.About the intervention of BNR in support of the RON, Central Bank (BNR) Governor Mugur Isarescu Mugur said that the BNR reserve comprises the cash reserves of commercial banks, which are not obliged to keep a certain sum each day. “They may keep RON 100 M for 5 days, then RON 1 bln for the next 7 days. A decrease of the reserve does not necessarily mean that BNR intervened on the foreign exchange market,” the governor explained. In conditions of volatility, the exchange rate must do its duty, and this is why a floating exchange rate is maintained. “BNR does not comment the level of the exchange rate and does not certify the intervention level. If it goes up, then it’s alright, if it goes down, then things are bad. The exchange rate did its job well, because it allowed us to maintain some stability,” Isarescu emphasised, hotnews.ro reports.He underlined that the monetary market and the exchange rate were also influenced by the fact that foreign investors have sold their portfolio of state bonds amounting to several billion RON. Speaking about the 1.5 pc economic growth forecast for this year, the governor said that it should be diminished in line with the data regarding the economic evolution so far, especially those concerning agriculture. However, Isarescu said that he does not share the EBRD forecast of 0.8 pc either. The situation of the agriculture justifies a partly diminished forecast of economic growth, he added. In a separate move, Isarescu stressed that keeping the commitments made to the IMF, EC and WB is crucial.
ING: Central bank used slightly over EUR 1 bln to support RON in July
Within this context of depreciation, ING Bank economist, Vlad Muscalu said that BNR used slightly over EUR 1 bln to support RON in July, a time period during which national currency was affected by political strains, according to Mediafax. “Thus, this makes us replace our positive forecast on short term with a negative one and we estimate RON returning to the recent lows, 4.65 units per EUR”, a report sent yesterday by ING Bank reads.