“Foreign currency reserves increased by EUR0.6 billion to EUR32.7 billion, but in reality it is quite likely the central bank sold euros, so EUR/RON was capped around 4.13. It also suggests excess liquidity decreased in May and means there is upward pressure on rates,” ING said.
The Finance Ministry sold EUR939.2 million in foreign currency paper in May, which fueled forex reserves. Additionally, the reserves were boosted by the appreciation of both US dollar and GBP against the euro, according to ING estimates.