As of March 31, 2024, foreign exchange reserves at the National Bank of Romania were at the level of EUR 64.27 billion, compared to EUR 63.12 billion as of February 29, 2024, the National Bank reported on Monday.

The level of gold reserves remained at the level of 103.6 tons. In terms of the international price situation, its value was 6.89 billion euros

In Europe, Switzerland has the largest foreign exchange reserves (about 80 billion euros), surpassing France, Germany and Italy combined.

Romania’s international reserves (currency plus gold) as of March 31, 2024 amounted to EUR 71.17 billion, compared to EUR 69.36 billion as of February 29, 2024.

They are managed by one of the NBR’s most modest committees, the 11-member Governor-appointed International Reserve Management Committee. Their sessions last no more than an hour and the operations they perform do not use derivatives.

Their adequate volume increases confidence in the government’s ability to manage crisis situations and helps reduce costs associated with external state loans.

Developing countries with access to capital markets at a reasonable price, as in the case of Romania, usually use foreign exchange reserves – part of international reserves – as a precautionary measure to deal with the risks associated with a possible deterioration of the current account balance. In an economy with a floating exchange rate, one factor that plays an important role in determining the optimal level of foreign exchange reserves is the volatility of the local currency, especially during times of instability in financial markets.

The NBR is primarily aimed at the liquidity and security of reserves, and secondly, at obtaining profit, while the management of international reserves of the BNR is carried out in conditions of reduced risk appetite. Thus, the maximization of the value of international reserves occurs under the conditions of compliance with prudent risk limits, which ensure their constant availability for use in case of need.