A Solution is needed: Dealing rooms have become “panic rooms”

Isn’t very weird? Last week I was telling you that the fair price of Leu should be 1 euro / 4,5 leu. Today I will tell you that either mr Isarescu will do his miracle again, or sooner or later Leu will drop down in a violent way. (In my opinion, as I already have stated many times in the past too, the Governor of the National Bank of Romania, mr Isarescu, is a key factor of stability in Romania all these years).
Last week the Romanian currency disappeared from the market. As it was announced in a conference, this happened so as to prevent speculators from gambling against it. But now we have reached crazy situations. Banks enter in the interbanking system, so as to borrow money and they are asked to pay interests from 25 – 40%. Last week there is a rumour that a bank paid 80% (!) because it urgently needed money, to cover an open position.
This situation has driven crazy all the dealing rooms in Romania, with the people of the treasury departments being in panic and searching for money non stop. No wonder why the interest for someone to deposit Leu these days has exceeded 10% and in some cases banks offer even up to 15%!
I don’t know what will be the solution in all these, but there must be found one in the next days, because I don’t think that the system can handle a long period under this cash shortage. If you did not hear it already, I will also inform you that several transactions (in all market segments) were cancelled or postponed these weeks. Cars, furniture, properties, anything that was supposed to be bought by credit, is “on hold” by most of the banks. This is the first sign of influence in the Real economy and there will be many more to come.
This week is expected to be very interesting…