Mugur Isarescu believes that Romania is currently transforming, not suffering from a crisis

Newsroom 12/08/2011 | 13:38

Mugur Isarescu, national bank governor, opened this morning a three day debate on the structural issues of Romania, organized by the League of Romania Students abroad (LSRS), under the aegis of the central bank of Romania.

In his opening remarks, Isarescu stated his own opinion on the current crisis that has engulfed debt-ridden economies in Europe and America. He said that we are at the end of a 40 year domination of the dollar, a currency that abruptly devaluated in 1971, when President Nixon cancelled the direct convertibility of the U.S. dollar to gold, but became the leading currency for decades. At this moment, we are witnessing the end of a cycle, but nobody knows what will be the future development directions. Uncertainty is the mantra of current market evolutions.

The central bank governor also avoided to use the word crisis in connection to the Romanian economy, as in his opinion, our economy is currently suffering a transformation. Isarescu considers that the economy is suffering cyclic shifts, just as the human spirit changes from optimism to pessimism.

The central bank treasury that is currently on Russian soil has also been mentioned by Isarescu. Romania sent its treasury, approximately 94 tones of gold to our ally, Russia, in 1919, but hasn’t been able to return it yet, although legal and political agreements have been reached. The central message was that Romania will continue to put efforts into returning the treasury back to the Romanian vaults.

Ovidiu Posirca