Central bank governor explains the appreciation of the national currency

The national currency has appreciated in the past days because a major buyer has sold more foreign currency and that led to a RON reinforcement, the governor of the National Bank of Romania (BNR), Mugur Isarescu said in a press conference on Friday when questioned about the recent EUR-RON rate exchange evolution.

“An important buyer has sold a lot of foreign currency for several days”, said Isarescu, adding he presumes this major client must have thought that the RON is depreciating if the Government has been dismissed and decided to sell a bigger sum now in order to earn more later. “But it didn’t happen. He sold more and the national currency increased“, the central bank governor said, explaining that the RON market is not “a very deep one” and if somebody is coming to sell EUR 100-200 million he can move the rate exchange.

“As a conclusion, not only the political situation has an impact on the foreign exchange market. Besides, I suppose that the investors on the foreign exchange market were used to this kind of news, like <we are already vaccinated against the political situation>”, Mugur Isărescu argued.