Romania’s forex reserves up 4.2% y/y to EUR 32.5bn at end-2013

By bne IntelliNews January 6, 2014

The foreign currency reserves of Romania’s central bank increased by 4.2% y/y to EUR 32.5bn at the end of December 2013, the country’s monetary authority announced. The forex reserves in the central bank’s vaults thus climbed slightly on the year but reached the same level where they were three years earlier at the end of 2010.

The forex level is safe and reducing it would create problems forcing the government to pay back quicker its debt and rising re-financing cost, central bank governor Mugur Isarescu was quoted as saying by HotNews online publication.

The central bank’s foreign currency reserves have increased sharply in 2009 and in early 2010 – by some EUR 7bn close to the current level, under the EUR 20bn programme with the IMF, World Bank and the EU. The stock of loans borrowed by the central bank from the Fund with the sole purpose of boosting own forex reserves exceeded EUR 10bn in Q3 of 2012 – when they were thus roughly one third of the EUR 31bn forex reserves at that time. In the meantime, the central bank has returned part of the money to the Fund, to which it still owed EUR 5.74bn at the end of October 2013.

There are some EUR 6bn held by the banks as compulsory reserves of the commercial banks at the central bank, governor Isarescu stressed in December [plus the equivalent in local currency of some EUR 3-4bn]. No official data has been released in this regard, though.

The monetary authority wants to cut the required reserve ratios for both local and foreign currency liabilities in 2014, the governor has said. This would predictably put pressure on the forex reserves also. The required reserve ratio for forex liabilities was cut from 40% before the 2008 credit crunch to 20% and there is no reason to not cut it more, Isarescu argued.

Related Articles

EU to fund feasibility study on Slovakia’s proposed Eastring gas link to Balkans

The EU has agreed to help fund a feasibility study on the Eastring pipeline project, which would link Slovakia to the Balkan markets, Slovak transmission system operator Eustream announced on May 26. ... more

IMF recommends fiscal consolidation for Romania

The International Monetary Fund (IMF) has estimated that the fiscal policies envisaged by Romania will result in a wide deviation (of over 2% of GDP) from the optimum 1.5% of GDP medium-term budget ... more

Owner of Romania’s Dedeman reportedly close to signing largest ever deal in the Romanian office segment

Dragos Paval, owner of Romania’s biggest DIY retailer Dedeman, is reportedly close to signing an agreement with Africa Israel Investments for the acquisition of an office building project in ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss