Despite the tensions coming from the political scene, the increases in yields on government bonds (which means that investors perceive higher risk in Romania), and the falls on the stock market, the National Bank of Romania (BNR) managed to keep the exchange rate stable. However, BNR reportedly had to sell euro from its reserves to counter money outflows.

On December 3, the BNR announced an exchange rate for the euro of RON 4.9770, with practically zero fluctuation compared to the previous trading session. Since the first round of the presidential elections, the exchange rate registered a tiny increase from RON 4.9767 to RON 4.9770.  

Cristian Popa, a member of the BNR Board, said at ZF Live that investors are waiting, but it can be seen how currency outflows are greater than inflows. 

However, BNR announced that its foreign currency reserves went down by EUR 1.7 billion last month, reaching EUR 61.17 bln at the end of November. According to sources quoted by Economedia.ro, the central bank sold euro from its reserves in the last week of November, after the first round of the presidential elections, to keep the exchange rate under RON 5. On Monday, November 25, after the shock victory of ultranationalist Calin Georgescu in the first round, the intra-day exchange rate went above RON 5.

BET, the reference index of the Bucharest Stock Exchange, recorded a decrease of 2.35%, after having previously increased by 0.6% on December 2, immediately after the parliamentary elections.

iulian@romania-insider.com

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