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Monday, November 01, 2004

the 9% inflation target to be missed

National Bank of Romania (NBR) Governor Mugur Isarescu said rising prices for oil and planned salary increases of as much as 20 percent to government employees ahead of the general elections (scheduled for November 28) may cause Romania to miss on its 9 percent inflation target for this year. However, annual inflation would not exceed 10 percent, he was quoted as saying by Bloomberg.

In other news, Romania plans to allow foreigners to make deposits in its domestic currency as of next April, as part of efforts to make the ROL fully convertible before the planned accession to the European Union in 2007. The ROL will become convertible on the international currency market later in 2005 or 2006, after Romania gives foreign investors full access to its domestic debt market and allows them to also make deposits at the central bank, Isarescu said. "We have to do this if we want to be part of the EU club," NBR Governor Mugur Isarescu maintained. "I'm an advocate of Romania joining the EU in 2007."

Sources: Bloomberg, ZF.

Posted by Mihai : 11/01/2004 01:25:00 pm