There Is No Denying The Romanian Exchange Mkt Is In Crisis-Ctrl Bkr

Romania’s central bank governor Mugur Isarescu said on Saturday that the exchange market has reached a critical point taking in consideration the evolution of the exchange rates.

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“I cannot deny (the crisis on the exchange market) considering the exchange rate’s fluctuations,” said Isarescu.

Isarescu said that instable financial markets are characterized by the rapid drop or hike of the exchange rates.

The central banker said that the exchange rate is an important component for all economies especially for ‘a small and open economy” as Romania has and added this instability could be very damaging.

The Romanian leu jumped 2% against the euro in high volume trade Friday after hitting a two-year record low in the morning.

The leu hit a two-year low at RON3.6900 to the euro in early trade, after opening at RON3.6450/RON3.6500. It gained 0.8% to the euro Friday throughout the day, closing at RON3.6140/RON3.6165, traders said.

Later Friday, Isarescu said the bank will intervene on the market if it deems it necessary, without giving explanations, just like it did in summer, when the leu hit a five-year high against the euro.

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