Romania cb prepares for cap account liberalisation

The National Bank of Romania (BNR) is preparing to fully free the capital account by cutting the interest rates to the national currency leu deposits, the Capital weekly reported in its latest issue.

In the past three months, the BNR lowered the intervention interest rate by 2.5 per cent to the current 18.75 per cent a year, 1 percentage point less than in August 2003.

A major risk Romania might face in the case of massive foreign exchange inflows on the domestic market would be for such inflow