Romania's Central Bank Governor Mugur Isarescu: central bank is ready to avoid the instability of the exchange rate

Luni, 23 februarie 2009, 16:42 English | Business

Romania's National Central Bank (BNR) is ready to avoid unstable moves of the exchange rate, central bank governor Mugur Isarescu declared on Monday. He added a controlled adjustment of Romanian currency RON and of other emerging currencies in the region was needed.

A small adjustment was indeed necessary and the excessive depreciation of local currencies can create unstable movements in the economy which must be avoided, Isarescu declared, quoted by Romanian news agency NewsIn.

A possible loan from the IMF would aim at protecting the currency reserves, not at supporting the economy financially, he said.

He said that the BNR was discussing with the Government to conclude an evaluation of a possible loan, establishing the amount, the reimbursing schedule and the optimal costs of such a move.