National Bank of Romania makes surprise decision to cut minimum foreign reserve requirements

D.Shistohilis - 01.04.2011

The surprise decision of the National Bank of Romania to cut the minimum foreign reserve requirements ratio on foreign currency-denominated liabilities from 25% to 20%, thereby releasing over one billion euros to banks, is interpreted by bank analysts as a signal encouraging lending and indirectly the economy. In general, foreign currency-denominated loans are seen as an alternative way to support investments and real estate acquisitions.