(Bloomberg) -- Romanian Central Bank Governor Mugur
Isarescu said he's ``not comfortable'' with the strengthening of
the local currency as it encourages Romanians to borrow in euros
and expose themselves to risks of currency swings.
``I'm not only concerned about competitiveness of
exports,'' Isarescu said in an interview today on the sidelines
of a conference in Athens, Greece. ``The exchange rate
encourages banks and clients to lend and borrow in foreign
currency. The population earns in local currency and borrows in
forex. These loans for unhedged borrowers in my view are a
risk.''
Read more at Bloomberg Emerging Markets News
Isarescu said he's ``not comfortable'' with the strengthening of
the local currency as it encourages Romanians to borrow in euros
and expose themselves to risks of currency swings.
``I'm not only concerned about competitiveness of
exports,'' Isarescu said in an interview today on the sidelines
of a conference in Athens, Greece. ``The exchange rate
encourages banks and clients to lend and borrow in foreign
currency. The population earns in local currency and borrows in
forex. These loans for unhedged borrowers in my view are a
risk.''
Read more at Bloomberg Emerging Markets News
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