It Cost Less Than 1 Billion Euros for Romania to Shield Its Currency
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Romania’s central bank intervened in the foreign-exchange market to prop up the leu after concerns about the effect of a government spending spree on inflation and the budget pushed the currency to a record low last month.
The bank, which has a managed-float policy for the leu, spent less than 1 billion euros ($1.1 billion) from its foreign-currency reserves on the interventions, according to a central bank official, who asked not to be named because the information is confidential. The purchases, along with a defense payment, triggered the biggest drop in reserves since June 2018.