NBR reserves 500m euros higher

The National Bank of Romania”s foreign currency reserves increased in March by over 554 million euros to reach 12,562 million euros. The growth pace was slower month-on-month, but is still high, with expansion being fuelled mainly by foreign currency purchases on the market, dealers say. The surge seen in March was the result of inflows worth 934 million euros, representing direct purchases of foreign currency on the market, revenues from the administration of reserves, modifications to the minimal compulsory foreign currency reserves of commercial banks and foreign currency transfers to the state reserves. The central bank stuck by the decision that came into effect in February whereby it no longer publishes a detailed account of the sources of foreign currency inflows. The lack of an official benchmark for net purchases of foreign currency by the bank makes it increasingly difficult to guess the bank”s policy, with unpredictability being its main advantage intended to discourage inflows of speculative capital. Dealers estimate that for March the central bank attracted some 700 million euros from the market, slightly lower than level targeted for February. ZF