Romanian Ctrl Bk Bought EUR10B In ’05-’07 Period

He said the future evolution of the leu is “a high incertitude,” as Romania is closely tied with the region.

 

Isarescu said the central bank preferred the leu appreciation and bought euros in that period. At the same time, BNR also drained the excess liquidity, as it injected lei in the market following the euro acquisitions.

 

“We came to a point in which we were so stuffed with the draining operations. With one hand we bought foreign currency, with the other we acquired lei, in order to not encourage the banks, with the lei abundance at very low interest rates, to grant even more loans,” he said.

 

The governor also said that one has to look also on Romania’s economic realities, as the violent exchange movements have a negative impact on the real economy.