CEE Market Insights
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👤Erste Group
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Market outlook
The EURRON was finally put under control last week. It was clearly benefiting from the more dovish FED together with other regional currencies, but domestic factors might have also been at play, including recent statements by the finance minister that they had a liquidity buffer worth up to six months of gross funding needs and they would refrain from issuing local bonds. The NBR might have sold euros on the market on behalf of the Ministry of Finance, which is currently in the position of financing its needs by consuming its liquidity buffer, which is held mainly in FX. This week, the governor of the central bank will talk to the government and MPs about the design of the banking levy and its adverse impact on the exchange rate and economy
By
👤Erste Group
