"The euro is becoming ever more appealing not only for loans, owing to lower interest rates, but also for deposits, because of uncertainty related to the exchange rate.
Foreign currency deposits have continued to rise in recent months, even though the annual pace has cooled down to 13% in August, from 17-18% in spring, while the population's RON savings annually dropped by around 3.8% in July and August, not including inflation impact.
Beyond the fact that the rising prices and falling incomes have left less money for savings in Romanians' pockets, the still upward trend of euro and dollar-denominated deposited sums also indicates a possibly weakening trust in the domestic currency, considering the exchange rate is still exposed to political scene tensions and the fallout of the Government's stammering fiscal and economic policy.
The population's RON deposit volume dropped by 400m RON in July and August, to 61.7bn RON, while FX deposits in the same period advanced by the equivalent of 390m euros, to almost 9.7bn euros." writen by Ciprian Botea
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