“In case of a strong speculative attack, the central bank will use all its tools to weather the storm, just as it did before. However, fluctuations of 1% to 3% of the exchange rate fall within a balance zone and cannot be classified as having any particular significance,” Isarescu told a press briefing.
“Such modifications are not worrisome and don’t warrant a response,” he added.
Nevertheless, the central bank is concerned about the leu’s evolution against the US dollar, and its depreciation of over 10% in the recent period carries “certain significance,” the central bank chief said.
The national currency lost around 3% versus the euro in the past six weeks to a record low of 4.4662 units following a government collapse late April. Against the greenback, the leu fell to an all-time low of 3.5939 units, amid a negative international sentiment due to the escalating sovereign debt crisis in the eurozone.
Wednesday, the leu’s exchange rate was set at 4.4441 versus the euro, the highest level in five weeks, while the indicative against the US dollar advanced 0.4% on the day to 3.5573 units.