Romanians have steadily moved their savings from RON accounts into hard currency accounts since the beginning of this year, a trend that could be associated with lower confidence in the local currency following the steep depreciation registered in January, according to fresh central bank data, according to Business-Review.eu.
Bank deposits in RON have become less attractive during the last couple of years as a consequence of low – and real negative – interest rates, currency depreciation and high inflation rate.
In June, RON-denominated deposits of residents (individual clients and companies) declined by 0.6 percent month-on-month to RON 220 billion and the annual growth rate slowed to 5.1 percent, from 6.8 percent in December 2018, central bank data show.
Forex-denominated deposits rose by 1.5 percent month-on-month in June to RON 116.9 billion-forex equivalent, and by 12.9 percent year-on-year.
During the last couple of years, Romania’s bank clients increased their creditor status against banks due to strong savings and weak credit market, deposit holders being technically the banks’ creditors.
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