BANCI | ENGLISH

Isarescu: Strengthening monetary policy in 2005-2006 had negative effects

Autor: Bancherul.ro
2011-06-09 11:29

Strengthening the monetary policy in 2005 and 2006 had a negative effect on the subsequent evolution of prices, as it led to an unsustainable appreciation of the national currency and to the foreign currency loans boom, the governor of the National Bank of Romania (BNR), Mugur Isarescu, stated.

“The more we consolidated the monetary policy, as this second channel was expanding (foreign currency loans) and we had to make up for it, the more we drew speculative capitals and boosted the national currency. Does the simple theory of consolidating the monetary policy work? Have we got any good results out of it? No, the results are rather poor,” Isarescu explained, yesterday, at the beginning of a seminar on monetary policy, organized by BNR.

The central bank official argues that this mechanism created a soft spot by an excessive appreciation of the exchange rate and by puffing up the foreign currency loan “bubble”, a “trap” that more and more have fallen into.

The BNR governor’s presentation revolved around the idea that, although inflation is a monetary phenomenon, the quantitative theory finds its reflection in the actual economy only in the long run, whereas the relation of the two factors in the short and medium run is much more complex.

Isarescu also called attention to the people’s trust in the currency and saving and consumption tendencies, which largely account for the circulation speed and economic cycles.

Isarescu further stated, on the same occasion, that, when some point to the Economist Intelligence Unit (EIU) estimate, according to which the RON is overvalued, and its real value is 4.7/EUR, they should also quote, for good measure, the Barclays analysis, which proposes a rate of RON 4/EUR, “Romania Libera” reports. “I think they would draw a more accurate picture if both opinions were presented,” Isarescu argued.

The chairman of the Romanian Businessmen’s Association (AOAR), Florin Pogonaru, stated, on June 1, that, according to a study of the Economist Intelligence Unit (EIU), the reference exchange rate is overvalued and a more accurate level would be, at the moment, RON 4.7-4.8/EUR.

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

21.11.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Bogdan Octavian Marin, director executiv al Directiei Managementul Canalelor Retail
BCR

„Scenariul jocului este următorul: Cu toţii ... vezi profil

Toate Profilele

Profil de Banca

EximBank

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

LOAN OFFER
Buna ziua Aceasta pentru a informa publicul larg că oferim împrumuturi celor care au nevoie de ... detalii
!
Greu cu limba romana! Ce legatura are cuvantul "ecosistem" din limba romana cu sistemul de plati ... detalii
Bancnote vechi
Am 2 bancnote vechi:1-1000000lei;2-5000000lei Anul ... detalii
Bancnote vechi
Numar de ... detalii
Bancnote vechi
Am 3 bancnote vechi:1-1000000lei;1-5000lei;1-100000;mai multe bancnote cu eclipsa de ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126