Loading ...The National Bank of Romania (BNR) endorses the currency market in order to work and does not target a certain level of the exchange rate, said on October 13 in a news conference governor of the National Bank of Romania (BNR), Mugur Isarescu.
“If illogical variations of the currency exchange rate occur, it means something happens and that the market does no longer function normally. A central bank has to intervene when it has proofs on the reality of quotations on the market, of the quotation on screens.
We agree to establish the market exchange rate, among not necessarily correct players, but real, who have lei and foreign currency respectively. We are against the moves that lack foundations. Playing on screens with the quotations is a pity for a functional market,” said Governor Mugur Isarescu.
The Governor of the National bank of Romania explained that the central bank has to check whether what it appears on screens occurs in reality, too, on the forex market and asked on Monday the quotations from the participants in the market.
The players who wanted to convince people that you can make profit without capital want to convince us that the exchange rate of the leu may change without lei,” said the BNR official.
The players who wanted to convince people that you can make profit without capital want to convince us that the exchange rate of the leu may change without lei,” said the BNR official.
Isarescu added he did not rule out that in situations of big turmoil, when everybody watches every move of the central bank, BNR send signals about its determination of not allowing declines and fluctuations in the exchange rate of the leu currency without foundations.
Mugur Isarescu voiced surprise related to some statements made public in the media, according to which the Central Bank would waste the foreign currency reserve on interventions with a view to supporting the leu currency.
Isarescu explained ironically that, even in the pure theoretical case in which BNR sold euros to buy all the lei from the market, the National Bank of Romania would need only 12 billion euros, whereas the foreign currency reserves is of some 26 billion euros.
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