Emerging Markets Rates and Currencies Handbook

Romania (RON - Romanian Leu) Citi in Romania Citi has been present in Romania since 1996, servicing mainly multinationals, local large companies and the public sector. Citi is one of the main players in the FX, swaps and bonds market (Citi is a primary dealer). Citi is the market leader in securities custody services. Market Overview The National Bank of Romania (NBR) oversees a floating exchange rate regime. They loosely manage extreme volatility in the market (a rough interval for the last 3 years for EUR/RON would be 4.70 — 4.95. The NBR reserves its right to intervene whenever it considers appropriate). Main currency pairs: EURRON (60 — 70%), USDRON (20 — 30%) and GBPRON, HUFRON, PLNRON. The IRS market in Romania has been usually derived from the relatively more active XCCY and XCCY basis swap curves. Lately activity in IRS has increased, mostly on the back of client demand, but the market is still trading it as a cross between XCCY and XCCY basis. The most active part of the curve is 1 — 5 years, with very little activity above that. It is traded against 3m ROBOR. Convertibility Fully convertible. 136