Isarescu Says Leu’s Appreciation Remarkable, Given Cyprus Crisis

05.02.2013 By Bogdan Neagu

The Romanian leu’s rise in recent weeks is remarkable taking in consideration the Cypriot banking crisis and problems at the local unit of Bank of Cyprus, central bank governor Mugur Isarescu said Thursday.

“It is remarkable that in crisis conditions, with a crisis near Romania, with other tensions, the leu appreciated and not depreciated,” said Isarescu.

He did not rule out a leu’s rise concomitant with an increase in exports. “It happened before in Romania, for example in 2000 and 2001. I can see no reasons for it to not happen again, but not with a heavy appreciation of the leu,” Isarescu said.

The governor said earlier that the exports and the manufacturing industry performed above expectations in the first months of the year, signaling an economic improvement.

The leu gained more than 2% against the euro in the past month, and it is 2.4% stronger than at the start of the year.