Speaking at a conference after the presentation of the bank’s quarterly inflation report, Isarescu said the bank has been trying to correct any significant deviations of the exchange rate from the so-called “fair value.”
“This is one of the reasons the central bank has never agreed to associate inflation targeting with the free floating of the exchange rate. We have a managed floating system, where we try to correct the exchange rate’s deviations from the fair value and to keep it in a balanced area,” he said.
Romania’s leu has strengthened against the euro in the last two months, amid a positive sentiment in the market, hitting a 12-month high of 4.3351 per euro in the second half of January.
However, the currency has lost some of its thrust recently and Thursday the central bank set a reference rate of 4.4106 to the euro, the lowest level in one month.