Speaking at the presentation of the bank’s quarterly inflation report, Isarescu said the leu’s appreciation is due to higher demand for government bonds from foreign investors, as well as by temporary cash flows from Russia and Ukraine.
“I’m not convinced that the economic fundamentals are that solid or that the exports are going all that well,” Isarescu told reporters. “You shouldn’t think that the central bank wants the appreciation of the leu, or at least I don’t want it.”
The leu weakened to around 4.435 against the euro after Isarescu’s comments. In early trading, the currency had strengthened to 4.42 to the euro, its highest level in eight months.