RON reaches 3.6822, lowest level vs. EUR in two years

The PM, Fin Min and BNR Governor meet to discuss the necessary measures. BNR Spokesman tried to calm down the spirits. The European currency was rated yesterday at RON 3.6822, according to the exchange rate posted by the National Bank of Romania, 4.89 bani more than in the previous day, a value not reached since January 6, 2006, when it was rated with RON 3.6821. At the same time, the US dollar reached RON 2.5079, 3.83 bani more than in the previous day, when the USD was rated with RON 2.4696.

PM Calin Popescu Tariceanu, BNR Governor Mugur Isarescu and the Minister of Economy and Finances, Varujan Vosganian, met yesterday evening at Victoria Palace to discuss the necessary further measures to the growth of the EUR rate. Central bank Spokesperson Adrian Vasilescu tried to calm down spirits, saying such meetings are ordinary ones. "These are usual meetings, there's nothing extraordinary. It is the beginning of the year and it is absolutely normal to discuss the issue," Vasilescu said, quoted by Rompres. He also categorically rejected a sharp depreciation of RON amid rumours regarding a massive currency pull-out from Romania. Information supporting this idea came from the Sibiu Futures Stock Exchange that quoted yesterday the RON/EUR exchange rate for March at 3.68.

But for some, the situation is not that simple. The RON depreciation was fast at the beginning of 2008, raising questions on the year's monetary perspectives. Ministerial sources told yesterday that PM Tariceanu wanted to consult BNR Governor Isarescu on the perspectives of inflation, in order to correlate economic and social policies with the effects of consumer goods prices.

The government's inflation target for 2008 is 3.8 per cent, while the BNR one is of 4.3 per cent. Parts of the media speculated on the issue yesterday, especially that two days ago, the central bank increased the monetary policy interest by 0.5 per cent to 8 per cent. According to some analysts, the price increase in December shows a different trend that would lead to an yearly inflation rate of 6.5-6.9 per cent.

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