Isarescu reaffirmed the political neutrality of the National Bank, reminding that Romania depends on the markets to pay wages and pensions and demanded that dialogue be restored on the political scene.
“Politicians need to sit down and find solutions, not make assumptions that the exchange rate is going up because of one person or another.”
He says he cannot go into more details because of the neutrality of the central bank, but that he needs to tell Romanians how the situation stands. “And here is how things stand: we are dependent on the international markets and they penalize you drastically. For now this is apparent in the exchange rate. It will inevitably also show in the financing costs. It’s difficult to tell how much comes from the international context, from the geographical position and how much from what is happening domestically,” the Governor said on Monday when he presented the quarterly report on inflation.
In the past few weeks the EUR/RON exchange rate hit high after high, and has become an instrument used for election purposes in the referendum war.
Since the beginning of July, when the procedure to suspend president Traian Basescu was launched, the leu has depreciated by around 4.5% against the euro, mainly because of the political disputes, with the euro even exceeding RON4.46 at times.
Domestic political tensions added to the turmoil in the eurozone, with Isarescu saying the ongoing scandal is the last thing Romania needs.
“One must not forget that this world is made up of markets where Romania gets significant amounts to finance its budget deficit, pay wages and pensions. This is not about BNR playing around and interfering. This is about sending very clear signals that this country must go on. Everyone must do their duty,” Isarescu said.
(English version by Daniela Stoican)