ING Bank Romania Head: Ctrl Bk To Protect Leu At Any Cost

Romanian central bank seems determined to spend as much as needed to support the leu, which is seen depreciating by year-end and further appreciating once with the revival of European markets, according to ING Bank Romania’s head Misu Negritoiu.

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"The exchange rate could reach RON4.3 versus the euro in 2010 but the policies are confrontational (e.n. aggressive). (...). It's a way to make politics but (e.n. the measures) are counterproductive," Negritoiu told an economic seminar Thursday.

He said the exchange rate was under pressure in the recent period, but due to commercial transaction and not to speculations.

Negritoiu believes Romania is close to the end of the financial crisis, which does not mean the country's economy will revive.

ING sees an economic growth of 0.9% in 2011, while in 2012 and 2013 the GDP is seen accelerating its growth to 4.6% and 6%, respectively.

Negritoiu also said the foreign direct investments and capital inflows will revive in 2010, given that Romania will enter a period of stability once with the end of the upcoming presidential elections, scheduled for November 22 with a likely run-off on December 6.

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