Exports on the rise, but forex market shrinks again in October

The solid performance of exports, which in September reached a 3.5bn-euro monthly high, does not show in the volume of forex market deals, which dropped further in October.

The volume of forex deals sealed on the interbank market declined significantly in October from previous months after having reverted to a level similar with the 2008 one during summer.
Domestic banks’ dealers traded 30.4bn euros on the Bucharest market, down 19% from the 37.6bn-euro record high posted in June. The deal volume rose, however, by 9% from October 2009, much less compared with previous months, when the annual growth pace reached as much as 60%, according to NBR data.
During summer, the stepped up activity on the Bucharest forex market reflected a rebound in exports and imports, as well as the rising RON liquidity. However, dealers had expected, as early as two-three months ago, investors’ aversion to risky assets to increase towards yearend.