Romania Central Bank ok’s foreign banks access to the local forex mkt

(Initially published in http://www.romania-report.ro/ - Mar 9, 2005)

Bucharest, March 9, 2005 - Romania’s central bank board approved a decision allowing foreign banks full access to the country’s forex market as part of its moves to liberalise the capital account.

Under the new decision, foreign banks which do not have yet a branch or a representative office in Romania will be allowed to conclude transactions on the local forex market.

Last month, the central bank has allowed full access to the local corporate on the Balkan country foreign exchange market. The central bank decision is expected to be published in the country’s official gazette next Tuesday.

Earlier this year the central bank governor Mugur Isarescu suggested that the deadline for allowing foreigners to make local leu currency deposits as well as buying and selling domestic debts, another step in freeing the capital account, is closer than initially announced.

The central bank announced that the non-residents would be allowed to have access at leu deposits by mid 2005. Romania has to make its currency fully convertible ahead of its planned accession to the EU in 2007. It also has to offer to all Romanians the right to make deposits abroad.

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