ZF Expert: A debate on the economy's euroisation is welcome

A debate on ways to make the Romanian economy less “euroised” is welcome, say analysts and public officials invited to attend ZF’s open editorial meeting “ZF Expert”, considering the increasingly uncertain prospects of adopting the single currency in 2015, with the National Bank being unable to use its levers to help the economy.

“The fact that the forex market moves are quickly reflected in inflation prompts this debate on the exchange rate. Whenever there was an exchange rate depreciation, it was reflected in inflation the following month. This makes the NBR much more cautious with interest rate cuts, fearing exchange rate fluctuations,” says Radu Crăciun, investment manager of Eureko Pensii.
The economy could become less “euroised” if current prices were expressed only in RON, and the sale of foreign-denominated loans to the population would be restricted.
“Something needs to be done in order to boost the RON’s credibility, but we shouldn’t be hypocritical. We can order merchants to display prices in RON, but we cannot ask them not to think in euros,” says Adrian Vasilescu, advisor to the NBR governor.