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Isarescu warns: Tendency of leu depreciation lasts longer
Compared to currencies of neighbour countries, the Romanian leu has a depreciation tendency which lasts longer, and depreciation pressure comes from the deterioration of the commercial balance, BNR governor Mugur Isarescu declared on Thursday.
“The tendency is towards depreciation, with lower figures but lasting longer. Pressure on depreciation comes from the deterioration of the balance of trade, exports grow by 9% and imports by 11%-12%. Commercial deficit has reached 8 billion euros and there is a problem. Covering imports with exports is lower and that lays pressure on the exchange rate,”said Isarescu at the conference presenting the Report of inflation.
The BNR governor also showed we need an excess of aggregate demand, but tensioned labour market is another problem. “Confidence in economy is growing, which is a good thing, but almost everything is up to consumers”, Isarescu mentioned.
The Balance of trade deficit in the first nine months of 2017 reached 8.8 billion euros, 1.9 billion euros more than the one recorded in the same period of 2016, according to data published by INS (National Statistics Institute). Over January 1- September 30, 2017, exports and imports grew by 9.2% and 11.8%, compared to the same period of 2016.