Iaciu, Doraly: To restart economy, one needs exchange rate stability first

Gheorghe Iaciu, the businessman who sealed one of last year’s top deals, by selling 50% in Expo Market Doraly to a fund of the largest European bank HSBC, believes the depreciation of the Romanian currency starting with the autumn of last year has spooked investors, which is why keeping the exchange rate in the 4-4.3 RON per euro should be a major target for the authorities. “Investors need stability to conclude predictable contracts. One has basic agreements, quarterly reports, forecasts, it is very difficult for business plans to be realistic when the exchange rate leaps from 3.7 RON to 4.3 RON in about two months’ time. I think if the euro were to exceed 4.3 RON, it would act as a brake, leading to cost cuts and layoffs; it would take us back ten years,” said Iaciu. The businessman entered into partnership with HSBC in a business estimated at 70 million euros, and, according to Iaciu, the London bank would have also been interested in other investments in Romania, but any decision in this respect was put off, partly because of the exchange rate.