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Peak Of Pressures Upon Leu Is Gone – Romanian Ctrl Bk Gov

The peak of speculative and non-speculative pressures upon the Romanian leu has passed, and the salary and fiscal policies are both much more adequate than in the past period, central bank governor Mugur Isarescu said Thursday.
Peak Of Pressures Upon Leu Is Gone - Romanian Ctrl Bk Gov
07 mai 2009, 14:08, English

Isarescu said the rapid alleviation of the leu depreciation risks is grounded on the quick adjustment of the external imbalances, which was even quicker than the central bank expected, even if they did not reach sustainable longer-term levels.

Not only the exchange rate had an impact on the external deficit decrease, but also the domestic demand deceleration, Isarescu also said.

Moreover, the arrangement with the International Monetary Fund, the European Union and other international financial institutions also helped reduce pressures on the leu-euro exchange rate.

Isarescu also said that all the international forecasts show a persistence of the crisis, alongside a reduced global demand, with a significant impact on the Romanian economy.