Romanians start to prefer RON over foreign currency for deposits
Romanians' foreign currency deposits rose by 16.9% in euros in
the past year, reaching 9.1 billion euros at the end of January
(35.5 billion RON), according to data from the NBR (National Bank
of Romania). In the last few months, however, foreign-currency
savings slowed down abruptly, in parallel with the exchange rate
stabilisation.
In January, the value of foreign-currency deposits saw an
insignificant rise against December, with RON-denominated amounts
even declining by 1.5%. Analysts say last year foreign-currency
savings rose as a result of the depreciation of the Romanian
currency, as well as amid political instability.
"January data point to a change in the population's preference for
deposits in the national currency over savings in foreign currency,
due to the stabilisation of the exchange rate and even a
strengthening of the RON against the European currency," says
Melania Hancila, chief economist of Volksbank. Individuals' RON
deposits continued to climb in January by 1.2% against the previous
month, to 59.9 billion euros, amid a return in confidence in the
national currency.