Governor Mugur Isărescu explained yesterday that the NBR(National Bank of Romania) intervenes to correct too ample exchangerate fluctuations that would harm the economy, but says the euro isnot artificially kept at 4.2 RON. At the same time, businessmanDinu Patriciu said that currently the real exchange rate should be4.7-4.9 RON per euro and that the NBR is wrong to artificially keepthe euro at a lower level.
The depreciation of the exchange rate is seen by businesspeopleas a method of encouraging exports and of reviving the economy,with their position being backed by the current clash between theUnited States and China, which are struggling to weaken theircurrencies.
"The real exchange rate currently is over 4.7-4.8 RON per euro. Thefact that the National Bank artificially keeps the exchange rate atthe current level is wrong," Dinu Patriciu said yesterday.
Patriciu's argument is that a "real" exchange rate would have givenimpetus to exports, with the businessman also saying the dollar isa more important currency for Romanian businesses than the eurois.
"Nothing is bought in euros. We buy all raw materials in dollars,"he said. Ever since the onset of the crisis, in the autumn of 2008,Patriciu has been in favour of a RON depreciation, and even talkedabout a 5 RON per euro exchange rate at one time.
On the other hand, Governor Isărescu says the problems of theRomanian economy are much deeper and have to do with the absence ofstructural reforms, and that exchange rate depreciation is a"simplistic" idea.
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