2024-05-02 11:31:00
On April 30, 2024, the foreign exchange reserves at the National Bank of Romania were at the level of 62.5 billion euros, compared to 64.2 billion euros on March 31, 2024, the Central Bank reported on Thursday, given that during April the repayment of the euro-denominated bond issue of the Ministry of Finance took place, in the amount of approximately 1.49 billion euros.
Gold from the Treasury of Romania in the BNR museumPhoto: Inquam Photos / Marin Raica
The main purpose for which international reserves are established is the final regulation of a country’s transactions with the rest of the world, in other words, to ensure the honoring of payment obligations towards the outside in the event that all other possibilities have been exhausted, explain Prof. Silviu Cerna.
Therefore, the most frequently used method for assessing the level of a country’s international reserves (sufficient, insufficient, optimal, etc.) is to relate it to the volume of imports.
As a rule, it is considered that the value of reserves must cover the value of imports for a period of three to six months. However, when determining the optimal level of a country’s foreign exchange reserves, analysts also take into account other factors, such as: the degree of openness of the economy (in terms of current transactions and financial transactions), the volume of immediately payable debts, access to loans external short-term, seasonality of imports and exports, etc.
In Romania, imports decreased at an annual rate, the latest data from the INS showing that in the first two months the monthly average of imports was almost 10 billion euros, which makes the reserves from the NBR more than sufficient, exceeding 6 months of imports.
During April, according to the BNR, the following operations took place:
• Inflows of 1.33 billion euros, representing: the change in the minimum reserves in foreign currency established by credit institutions at the BNR; replenishment of the accounts of the Ministry of Finance; funding the European Commission account and others;
• Outflows of 3.1 billion euros, representing: the change in the minimum reserves in foreign currency established by credit institutions at the BNR; installment and interest payments on account of the public debt denominated in foreign currency (including the repayment of the euro-denominated bond issue of the Ministry of Finance, in the amount of approximately 1,492 million euros) and others.
The level of the gold reserve remained at 103.6 tons. Under the conditions of international price developments, its value was 7.18 billion euros.
Romania’s international reserves (currency plus gold) on April 30, 2024 were 69.7 billion euros, compared to 71.17 billion euros on March 31, 2024.
The payments due in May 2024 on account of the public debt denominated in foreign currency, direct or guaranteed by the Ministry of Finance, amount to approximately 148 million euros, the BNR also states.
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