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Monday, January 24, 2005

National currency bonds become interesting for investors

A high liquidity level and the anticipation of the local currency's appreciation this year could turn Romania into one of the most appealing markets in the Central and Eastern European region.

Investors looking to gain substantial profits in the emerging markets prefer buying bonds in the national currency rather than investing in treasury bills, said Jonathan Bayliss, an analyst at JP Morgan.

Investors are becoming more interested in the Romanian capital market as state control is gradually eliminated, as required by the European Union.

As of April this year, when the liberalization of the capital account is expected, foreigners will be allowed to open ROL deposits.

The main advantages, but also the great risks of investing in the bonds in the national currency come from the local currencies' evolution.

That is why investors are chiefly looking for those markets where the national currencies are likely to strengthen during this year.

Posted by Iulia Rasoiu : 1/24/2005 03:41:00 pm