August in numbers

• August 1st

- The BNR announces that, on July 31, 2024, the foreign exchange reserves at the National Bank of Romania stood at 63,579 million euros, compared to 64,392 million euros on June 30, 2024. The level of the gold reserve remained at 103.6 tons. Under the conditions of international price developments, its value was 7,450 million euros. Romania's international reserves (currency plus gold) on July 31, 2024 were 71,029 million euros, compared to 71,641 million euros on June 30, 2024.

- The dollar - at the highest exchange rate of the month against our currency: 4.6145 lei, according to the BNR.

• August 2

- Euro - at the lowest exchange rate of the month against the leu: 4.9753 lei, which will be reached on August 26, according to BNR data.

• August 5

- The exchange rate of the Swiss franc reaches the lowest level of the month against our currency: 5.3529 lei, according to the BNR.

• August 7

- The Board of Directors of the National Bank of Romania decides the following: the reduction of the monetary policy interest rate to the level of 6.50% per annum, from 6.75% per annum, starting on August 8, 2024; reducing the interest rate for the credit facility (Lombard) to 7.50% per annum, from 7.75% per annum, and the interest rate for the deposit facility to 5.50% per annum, from 5.75%; maintaining the current levels of the mandatory minimum reserve rates for liabilities in lei and in foreign currency of credit institutions.

• August 8

- The European Central Bank (ECB) and the National Bank of Romania (BNR) decide to renew a framework agreement to provide liquidity in euros for the BNR, through a repo line. Liquidity lines aim to prevent financing tensions on international markets and unwanted effects on the stability of financial markets. Based on this agreement, the BNR can borrow up to 4.5 billion euros from the ECB. The repo line will be available until January 31, 2025, unless extended.

- The gram of gold, quoted at the minimum level of the month: 350.7813 lei, according to the BNR.

• August 13

- The BNR announces that, in the period January-June 2024, the current account of the balance of payments recorded a deficit of 12,176 million euros, compared to 9,087 million euros in the period January-June 2023. In its structure, the balance of goods recorded a deficit more high by 1,868 million euros, the balance of services - a smaller surplus by 1,064 million euros, the balance of primary incomes - a larger deficit by 603 million euros, and the balance of secondary incomes - a larger surplus by 446 million euros.

• August 14

- The Government approves the Government Public Debt Management Strategy for the period 2024-2026, which foresees actions by the Ministry of Finance to ensure the financing of the budget deficit and the refinancing of the public debt, mainly in national currency, in parallel with accessing external financial markets, depending of the opportunities offered in these markets.

• August 16

- The franc reaches the maximum exchange rate of the month against our currency: 5.2123 lei, according to BNR data.

• August 19

- Euro reaches the maximum exchange rate of the month against the leu: 4.9773 lei, according to BNR figures.

• August 22

- Prime Minister Marcel Ciolacu, the Minister of Finance, Marcel Boloş, and other members of the Cabinet are traveling to Brussels for discussions with Ursula von der Leyen, the President of the European Commission, regarding the need to review the assumed budget deficit target for the current year and establish a plan for seven years in which Romania's finances return to the maximum deficit level of 3% of GDP, as stipulated in the EU treaties.

• August 24

- The PSD Congress takes place, an event during which Marcel Ciolacu was re-elected head of the social democrats (the only candidate for this position), being also designated as the party's candidate in the presidential elections.

• August 26

- The dollar - at the lowest exchange rate of the month against our currency: 4.4532 lei, according to the BNR.

• August 27

- The Ministry of Finance announces that the budget deficit was 4.02% of GDP (71.04 billion lei) in the first seven months of 2024, higher by 1.62 percentage points compared to the same period last year, when reached 38.6 billion lei.

August 30

- The rating agency Fitch Ratings maintains the rating related to Romania's government debt at "BBB-"/"F3", with a stable outlook.

- The gram of gold reaches the maximum price of the month: 364.5107 lei, according to the BNR.

- The BET index, of the 20 most liquid securities from the Bucharest Stock Exchange (BVB), decreased by 2.58% in August, and the BET-BK, the yield benchmark of investment funds in shares, by 1.95 %.

- OMV Petrom shares depreciated by 4.31%, those of Romgaz - by 2.87%.

- The shares of Hidroelectrica decreased by 1.53% in August, those of Nuclearelectrica - by 5.22%.

- The shares of the electricity carrier Transelectrica appreciated by 2.86% in August, as the company doubled its profit in the second quarter of the year.

- Electrica shares fell by 9.84%, in a month in which the issuer announced a loss of 25.6 million lei for the second quarter.

- The BET-FI index, of the former SIF plus Fondul Proprietatea, had a decline of 0.31% in August, the smallest decrease among the BVB indices. The depreciation was caused by the dynamics of FP shares, which fell by 8.71% last month.