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Is the local currency still a clear advantage for the Romanian economy?

Autor: Liviu Chiru

02.09.2010, 23:55 39

While the outlook of euro adoption around 2015 is ever moreuncertain, economists state the advantage of having our owncurrency, for which the Romanian elite fought hard a century and ahalf ago, is no longer as obvious.
The RON, which first appeared as a physical currency in 1867, cameto strengthen national unity and identity, emerging with greatdifficulty and despite the will of the Ottoman and Austro-HungarianEmpires, under whose influence Romania was at that time.
The existence of a local currency providing the capacity to run aforeign exchange policy was one of the advantages the NBRidentified in the case of Romania even at the onset of the currenteconomic crisis, in 2008.
Would the shift to the euro be an advantage?
"Ultimately, it depends on where we want to stand, what we want tobe. If we want to be a strong economy, then being part of the eurozone clearly brings benefits. If we want to stay in our marsh witha lack of productivity, we are more hedged with our currency," saysDan Pascariu, chairman of UniCredit Ţiriac Bank board.
In his turn, Valentin Lazea, NBR chief economist, say thecoordinates of the Romanian economy are now completely differentagainst the moment the step toward a local currency was taken.

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