NBR's forex reserve down in June for second month in a row

The National Bank’s forex reserve fell by 362 million euros in
June, to 31.6 billion euros, the second consecutive decline, reveal
data from the institution. The value of the reserve is 2.5% lower
than the record 32.4 billion euros posted in April this year.

Analysts say, however, that the level continues to be a
comfortable one and leaves the NBR sufficient room for manoeuvre.

“The forex reserve continues to be very high and I don’t think
the decline of the last few months should be a reason for concern.
The foreign exchange reserve is one of the indicators where Romania
fares very well,” notes Lucian Anghel, chief economist of BCR.

Over the course of June, 1.15 billion euros were removed from
the forex reserve, as a result of the modification of the minimum
reserves set up by banks for foreign currency liabilities, and of
principal and interest rate payments for the state’s external
public debt.
The public external debt service was 161.8 million euros in
June, but in July it will amount to 876 million euros, in the
context where 700 million-euro eurobonds mature this month. This
month’s debt service is almost double as high as that recorded in
the entire second quarter.