Prime Minister Marcel Ciolacu has called for National Bank of Romania (BNR) governor Mugur Isarescu to stay in office for another term to secure the country’s monetary stability.

The world’s longest-serving central bank chief, Isarescu, is likely to get another five-year term this autumn that would also be his last, according to sources familiar with the negotiations commenting in February this year.

"Romania needs monetary stability and I think that [Mugur] Isarescu must stay for another mandate,” Ciolacu told Prima TV.

Isarescu (74) has held the position of BNR governor since September 1990, except for one year (December 1999-December 2000) when he briefly served as Romania's prime minister. 

Unlike other central banks in the region, the BNR has not been involved in conflicts with the government or severely criticised by the opposition during decades Isarescu has headed the monetary authority. At the same time, the country’s central bank maintained a roughly stable exchange rate by running a controlled floating exchange rate regime (that sometimes led to significant real appreciation of the local currency). 

Separately, Romania’s inflation remained among the highest in the region partly because of the not particularly hawkish monetary policy, which has been favourable to financing the government’s wide deficits.

Asked recently whether he was considering the option of another term, Isarescu said that the parliament will decide on this matter.

While Isarescu is likely to stay on as BNR governor, the first deputy governor, Florin Georgescu (70), is expected to step down because of health issues, while his seat will be filled by Leonardo Badea, currently deputy governor.

Both Georgescu and Badea have the support of the Social Democratic Party (PSD), which appointed them to various top positions within public financial institutions in the past.

Ciolacu is leader of the PSD, which is likely to remain the senior ruling partner after the parliamentary election this year.