RRI Live!

Listen to Radio Romania International Live

Central Bank’s reserves on the rise

The Central Banks' reserves have reached a record high


Warning: Trying to access array offset on null in /home/web/rri.ro/public/wp-content/themes/rri/template-parts/content.php on line 53
Central Bank’s reserves on the rise
Central Bank’s reserves on the rise


Warning: Trying to access array offset on null in /home/web/rri.ro/public/wp-content/themes/rri/template-parts/content.php on line 98
, 03.05.2023, 13:50

The longest-serving in office among all the key figures of post-communist Romania is the Governor of the Central Bank, Mugur Isărescu. Born in 1949, Isărescu is also the longest-serving head of the central bank in the world, having been governor since 1990. In 1999, he left for a year as an independent to head the center-right coalition government of the time, and then ran, unsuccessfully, in the presidential elections, where he obtained only 9.54% of the votes in the first round. After that he returned to the position of governor, with which he has been identified for almost a quarter of a century.

He is not necessarily liked by everyone, but no one disputes his competence and dedication, especially since he continues to record achievements in the governor’s seat. The National Bank of Romania has accumulated a record foreign exchange reserve, which exceeded 53 billion euros at the end of last month. Compared to March, the increase is 112 million euros. The level of the gold reserve remained at 103.6 tons, so Romania’s international reserves – currency plus gold – are getting closer to the value of 60 billion euros, an unprecedented amount in the country’s history.

Economic analyst Constantin Rudniţchi stated for Radio Romania, that a large foreign exchange reserve gives confidence to investors. The increase in foreign exchange reserves is largely due to the inflow of European funds, says Rudniţchi, but what is surprising, however, is that the money is not going at the pace it should to the implementation of projects, especially those include din the National Recovery and Resilience Plan. Constantin Rudniţchi:

There is a problem, though, namely that this consolidation of the foreign exchange reserve shows us that European money is not spent in the economy, that is, it remains in the accounts of the National Bank, because this is the route, it consolidates the reserve, increases it, but does not reach the economy for reasons that we see, namely that projects, especially those stipulated in the NRRP, are not carried out in a more dynamic, faster way. As a conclusion, I think we can say that the foreign exchange reserve is an asset, if we can call it that, which provides more confidence in the Romanian economy. When we go to the markets and borrow, for example, it can be an asset, perhaps one of the few assets, because if we look, as I said, at the trade balance deficit, at the budget deficit, at the debt level that is growing rather quickly, these are rather question marks for those who want to buy Romanian government securities or Romanian bonds, but the foreign exchange reserve is an anchor that anyone can rely on in case of need.

On the other hand, also from a press release from the NBR, it appears that the payments due in May 2023 in the account of the public debt denominated in foreign currency, direct or guaranteed by the Ministry of Finance, amount to around 272 million euros. (MI)

Finance Minister Tánczos Barna (Photo: gov.ro)
Today in the News Friday, 04 April 2025

Aid for companies affected by US tariffs

Romania, just like other European economies, is preparing for the new tariffs announced by the Trump administration.   The government in...

Aid for companies affected by US tariffs
Meeting of the defence minister Angel Tîlvar and the NATO secretary general, Mark Rutte
Today in the News Friday, 04 April 2025

Meetings on defence

  The international hysteria about the US abandoning NATO is unwarranted, the US Secretary of State Marco Rubio told the foreign ministers of...

Meetings on defence
Photo: Paul Teysen / unsplash.com
Today in the News Thursday, 03 April 2025

New US Customs Duties

The US president Donald Trump has made a decision, experts predicted long ago, namely new tariffs on all imports to US. In a speech delivered at the...

New US Customs Duties
Ilie Bolojan la Conferința „
Today in the News Thursday, 03 April 2025

Romania, towards the OECD

Romania is on track to complete all the technical analyses for joining the OECD in the next twelve months or so. The announcement was made by the...

Romania, towards the OECD
Today in the News Wednesday, 02 April 2025

EU reacts to US tariffs

European Commission President Ursula von der Leyen says Brussels has prepared “a strong plan” containing “firm countermeasures” to counter...

EU reacts to US tariffs
Today in the News Wednesday, 02 April 2025

Romania is getting ready for elections

Romania had in 2024, like in no other year in three and a half decades since it transitioned to democracy, four rounds of elections – local,...

Romania is getting ready for elections
Today in the News Tuesday, 01 April 2025

Romania marks one year since joining Schengen

Romania marks one year since partial accession to the Schengen area.   Romania marks one year since joining Schengen with air and sea borders, a...

Romania marks one year since joining Schengen
Today in the News Tuesday, 01 April 2025

Sea Shield Exercise

  “Sea Shield 25”, the largest multinational training exercise organised this year by the Romanian Navy, has begun in Constanta. A roughly...

Sea Shield Exercise

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company