September volatility has not perk up the forex market

The foreign currency exchanges operated on the Bucharest market reached only 29bn euros in September, 31% less than in the same month of 2008, even though the foreign exchange rate posted increased volatility after having stayed almost unchanged during summer. The volume was, however, somewhat higher than in August, when, at 22bn euros, the market hit a two-year and a half trading low, according to NBR data. “Volumes are falling mainly in the commercial area, in the context where we have drops by 20-30% for imports, as well as exports. Moreover, foreign currency lending, which used to feed the volume of exchanges on the forex market, had a very weak progression. The relatively low volatility of RON no longer attracts speculative capitals, either,” says Ionut Dumitru, chief-economist of Raiffeisen Bank. The average volume of operations carried out daily by banks between themselves in September climbed to 418m euros, from 312m euros in August. Foreign currency purchases by clients increased to 853m euros, in a daily average, while sales reached 920m euros.