Romania’s
\nnational currency, the leu, has exceeded the psychological threshold of 4.77 for
\none euro, thus reaching a historic low against the European single currency.
\nThe leu has been constantly depreciating for the last two months and a half.
\nThe governor of the National Bank of Romania Mugur Isarescu said at the
\nbeginning of the month, when the leu was fluctuating between 4.72 and 4.76 for
\none euro, that these variations are minor compared with those of the Hungarian
\nforint and the Polish zloty, which have seen much bigger fluctuations. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The new finance
\nminister Florin Citu also says the fluctuation of the leu-euro exchange rate is
\nnot very high given that it depends more on the international context, but that
\nthere are other negative figures, such as those concerning the national
\nindustrial sector which can be said to have entered into recession. The
\nminister says the Romanian economy is growing at a rate of 3% instead of the
\n5.5% estimated in the budget, the level of foreign investment is lower after
\nnine months compared with last year and industry already has three quarters
\nwith negative figures. Florin Citu believes, however, that it’s best for the
\nnational currency to be self-regulating, something seen in the figures. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
We recall that
\nat the beginning of the year, the record low exchange rate reported in January
\nwas 4.76 lei for one euro, which is very similar to what we’re seeing now. It’s
\nworth mentioning that the national currency was also depreciating at the time
\nagainst the US dollar and the Swiss franc. On the other hand, analysts noted in
\na report for investors published in October that if the pressure on the leu is
\nmaintained with an exchange rate of over 4.73 and if it later reaches 7.7, the
\nleu may then depreciate even further to 4.8 for one euro in the short or medium
\nrun. They say the same thing now, when the leu has reached a new record low.
\nHowever, analysts also say that it’s a good thing that the historic lows seen
\nthis week, last week or at the beginning of the year are very small, with the
\ndepreciation from one day to another being very low. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
Overall, since
\nthe beginning of the month, the Romanian currency has lost 1.5 bani against the
\neuro. Next year it is estimated that the euro will exceed 4.82 lei. A strong
\neuro compared with the leu means a chain of price hikes, experts also say, from
\nhigher interest rates on loans in euros to higher utility bills and more
\nexpensive homes. <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The Romanian currency reaches record low against the euro.<\/p>\n","protected":false},"author":107,"featured_media":66333,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[39554,34432],"coauthors":[],"class_list":["post-83714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-depreciation","tag-leu"],"acf":[],"yoast_head":"\n