The central bank's foreign currency reserves increased moderately with €62 million in December to reach €16.8 billion at the end of 2004. The central bank thus curbs the forex reserves' expansion stimulated by the strong inflows. But this was partly the effect of the higher forex expenses in Q4 – mainly the service of the external public debt plus other fees. The forex reserves at BNR remained however slightly above six months of imports, up from 4.8 months at end-2004 and 3.5 months at end-2003. In absolute terms, the reserves increased by 55% year-on-year to reach 22% of the last year's GDP. The massive forex inflows in Jan.-Aug. 2005 – and even earlier, in 2004 – were stimulated by the capital account liberalization in April forced the central bank to sterilize increasing amounts of funds. The trend reached it climax in August, when central bank's reserves increased by nearly €1.6 billion following forex incomes of €2 billion. But meanwhile the inflows dramatically diminished and even outflows were feared. Thus, the central bank has frozen sterilization deals. But it resumed such operations in December on fears of inflation.