The central bank lowered the requirement ratio to 8% from 10%, while simultaneously cutting the main interest rate by 25 basis points to a record low 1.75%. The minimum requirement for hard currency deposits remained unchanged at 14%.
“The foreign currency minimum required reserve stands at some 4 billion euros, meaning a two-percentage point cut will free up EUR500 million. For leu reserves, (today’s reduction) represents about 3 billion lei,” central bank governor Mugur Isarescu told a press briefing after the monetary policy board meeting.