Isarescu: Leu’s Appreciation Helped Mitigate Large Shocks

05.05.2011 By Florentina Dragu

Romanian leu’s nominal appreciation against the US dollar has dampened import prices and helped mitigate larger shocks, particularly in the fuels market, central bank governor Mugur Isarescu said Thursday.

"The economic operators used to include a certain margin in import prices (…) The leu's nominal appreciation against the US dollar was substantial, of over 10%; it has tempered larger shocks, mainly in the fuels sector," Isarescu told a news conference.

Isarescu said the leu's appreciation in the first quarter was market-driven and the central bank didn't target a specific exchange rate.

"It's true that it (the leu's appreciation) helped us (…) and import prices have at least slowed down their increase potential," Isarescu said.