Monday, February 23, 2009

Romanian cbanker: regional fx weakness unjustified

BUCHAREST, Feb 23 (Reuters) - Romania's central bank head said on Monday excessive depreciation of currencies in eastern Europe was not in line with economic fundamentals and the bank was ready to counteract any destabilising moves.

'The excessive depreciation of some local currencies is not justified by economic fundamentals and can create destabilising effects,' Mugur Isarescu told a news conference on regional currency

'The central bank is ready to act against destabilising exchange rate moves.'

Isarescu has also stressed eastern Europe is not the 'subprime of Europe,' and said banks in the region are facing common risks. He added he saw major differences regarding the stance on minimum reserves between Romania and other countries in the region.

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