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Romanian Leu’s Depreciation Bodes Ill On Economy – Ctrl Bkr

A further depreciation of the Romanian leu is “unnecessary and bad” for the economy, as significant declines may lead to a surplus of the current account, central bank’s governor Mugur Isarescu said Tuesday.
Romanian Leu’s Depreciation Bodes Ill On Economy - Ctrl Bkr
06 oct. 2009, 19:39, English

„It is neither necessary nor good for the Romanian economy to have the leu depreciate further. This doesn’t mean that there will be any more movement, down or up. In fact, we don’t think of shifts between 2%-3% to 4% as economically relevant,” Isarescu said during the parliamentary hearings for a new Board mandate.

He added a current account surplus is not good for an emerging economy as Romania’s. „We need capital inflows, technology imports…,” Isarescu said.

The Romanian leu has lost around 6% to the euro this year.

On Tuesday, the central bank set a reference rate at 4.2619 units per euro, 0.12% stronger on the day.

Isarescu, whose governor mandate will end October 10, is running for a new term at the central bank’s helm.