These three messages launched by the governor during a press conference suggest that Romania should expect massive foreign currency entries and pressure for the appreciation of the leu, belong to BNR’s Governor, Mugur Isarescu.
“When the exchange rate stabilizes, we will begin buying foreign currency from the market as well,” said Isarescu, adding that the purpose is restoring the foreign currency reserve for when most CRR is released and the money from the International Monetary Fund (IMF) will have to be repaid. “In order to enter the euro zone waiting room, ERM II, in 2012, the CRR on lei and foreign currency must drop to 2-5 percent, and we do not have much time left,” the Governor added. Isarescu said that “it is in Romania’s best interest” to attract all the money from the IMF, and BNR will consider replacing the foreign currency reserve with the IMF funds and stabilizing the reserve later on.
