ING: BNR’s Interventions On Forex Market At EUR600M In April

05.03.2011 By Florentina Dragu

The Romanian central bank is likely to have injected up to EUR600 million in the money market in April to smooth the leu’s recent appreciation against the euro, ING Bank Romania said in a report Tuesday.

The country's foreign currency reserves fell to EUR32.1 billion at the end of April, from EUR32.8 billion a month earlier.

"The decrease is mainly the product of the cut in reserve requirements for FX liabilities but was also influenced by unfavorable exchange rate movements, which led to a decrease in the euro-value of USD, GBP and SDR (special drawing rights) assets," ING said.

The lender added that the leu's appreciation in April was most likely market driven, same as in March.

Romania's central bank Tuesday left its main interest rate at a record low of 6.25% a year for the eighth straight time, as it continued to battle high inflation.

The bank also froze minimum reserve requirements at 15% for Romanian-leu denominated liabilities and at 20% for foreign currency liabilities.