Bloomberg: BNR sold up to EUR 1 bln to protect the national coin

Newsroom 03/02/2014 | 14:43

Romania’s central bank sold euros to shield the leu from a selloff roiling emerging markets, according to two currency traders in Bucharest, writes Bloomberg.

The central bank sold between 600 million euros and 1 billion euros in the past three days, said the traders, who asked not to be identified in line with their respective banks’ policies.

The leu gained 0,3 percent to 4.5020 per euro at 6:10 p.m. in Bucharest, the highest since Jan. 7 on a closing basis. Monday’s advance brought the appreciation to 1.1 percent in the last four days and is the third-best among the 24 emerging-market currencies monitored by Bloomberg.

“The central bank is trying to limit the spill over from the emerging-market storm,” Vlad Muscalu, an economist at ING Bank Romania SA, said in an e-mailed response to Bloomberg questions.

Romania’s central bank cuts minimum reserve requirements, key interest rate

The emerging markets have been in distress all throughout last week, after the US Federal Reserve opted to stick with its plan to continue to reduce its monthly bond purchases, now down to $65 billion, according to CNBC.