Good interest rates determine Romania’s Central Bank to place some reserves in commercial bank deposits abroad
The Romanian Central Bank had some EUR 280 million of its foreign currency reserves in deposits with banks abroad. This represented 6% of the amounts the BNR had in deposits, and about 1% of its total foreign currency reserves, according to Ziarul Financiar.
The BNR placed money in commercial bank deposits in other countries for the first time in September. In the past, its foreign currency deposits were made exclusively at other central banks.
“I believe the BNR was impelled by the low rates in the euro zone and is trying to diversify its placements for higher yields,” said Mihai Patrulescu, senior economist of UniCredit Ţiriac. Meanwhile, the BNR also increased its deposits in other central banks, to EUR 4.7 billion, of 15% of the total foreign currency reserves.
editor@romania-insider.com
