Romania’s forex reserves up 1.8% m/m to EUR 31.2bn in June 2014

By bne IntelliNews July 2, 2014

The foreign currency reserves held by the Romanian central bank increased by EUR 555mn to EUR 31,236mn at the end of June 2014, the monetary authority announced. The reserves were still more than EUR 1bn down on the year. However, they are at a satisfactory level, according to central bank.

Furthermore since only part of the reserves are owned by the central bank – with the other part being either borrowed (from the IMF) or comprising the commercial banks’ required reserves, the monetary authority has to actively manage them in order at least to cover costs. The adverse market circumstances in 2013, and particularly the volatile exchange rates, generated losses from this activity for the central bank.

While the certain recovery in June was caused by inflows from the EU budget, the gradual decrease in the central bank’s reserves has been driven by the monetary authority and the finance ministry paying back their loans contracted from international lenders (the IMF mainly) in 2009-2011. The central bank paid EUR 230mn to the IMF in June alone, while the government paid EUR 122mn the same month.

The gold stock remained unchanged at 103.7 tonnes and its value amounted to EUR 3,206mn.

Related Articles

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Romanian PM's adviser sacked after proposing tax on churches

Romanian prime ministerial adviser Eugen Teodorovici was reportedly dismissed from the post on July 14, the day after he spoke about the possibility of taxing the local Orthodox Church. Teodorovici ... more