EXCHANGE RATE STRATEGIES

Abstract

stract Romania joined the European Union on 1 January 2007, the nominal and real convergence process towards the euro area will have to continue, maybe even more accelerated than before. Romania's objective is to enter the Exchange Rate Mechanism (ERM II) and subsequently adopt the euro. To achieve this goal, the inflation rate will have to remain on a downward trend. Thus, the monetary policy of the NBR plays a key role in the process of nominal convergence, but also in the real convergence process, as evidenced by the literature, ensuring and maintaining price stability stimulating economic growth. From this perspective, the present paper aims to analyze BNR monetary and exchange rate policies, their evolution and especially the challenges they will have to face in the future from the perspective of European integration.

Keywords

• monetary policy
• inflation
• exchange rate
• economic policy
• central bank.