Analysis For The Degree Of Euroization In Romania

Euroization is defined as the adoption of the Euro currency by the authorities from a country outside the Euro area, as a legal currency and as an official currency, and this means that the country chooses to give up its national currency and that the national bank gives up using the monetary policy as an instrument of the economic policy. The objective of this study is to adjust the extent of meanings of the Euroization concept for Romania and to explain it under the terms of the optimum currency areas theory. Thus, an economy characterized by a high Euroization will be more ready to give up its national currency in the future, as that economy has passed the test of using the currency it wants to adopt. This study makes an analysis for the causes of Euroization, based on the economic literature and we have examined the forms of occurrence of Euroization in the Romanian economy, insisting upon the aspects related to the preferences of the economic agents for crediting and saving in the Euro currency. We consider that the increase of the Euroization degree may be considered an opportunity for the economies which propose to adopt the unique European currency, meanwhile constituting a vulnerability if adopting the unique currency is delayed and if that economy is affected by the external shocks which induce a depreciation of the national currency. The partial Euroization of the Romanian economy has encouraged the overheating of the national economy until 2008, but it fractured the adjustment capacity of the shocks by means of the monetary policy and of the rate of exchange. Thus, a partial Euroization acquired a characteristic of a unilateral Euroization, in which the capacity of the economy to neutralize the shocks gets decreased and the dependence on the decisions of the Central European Bank, respectively of the economic agents form the highly commercially and financially integrated countries with Romania gets increased.