The European currency
\nhas yet again reached a record high against the Romanian currency. For the
\nRomanians, a depreciated Leu translates into higher prices, higher installments
\nand higher bills.<\/p>\n
\n
<\/p>\n
The CFA Romania Association as early as the
Adrian Codirlasu is the president of the
Adrian Codirlasu:<\/p>\n The latest CFA survey,
Concurrently, the president of the Finance
Business analyst Dragos Cabat thinks that the
According to Cabat, QUOTE, at international level, what
Dragos Cabat went on to say that in the
(Translation by Eugen Nasta)<\/p>\n
Business pundits on the depreciation of the leu<\/p>\n","protected":false},"author":108,"featured_media":84626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[39554,30514,34432],"coauthors":[],"class_list":["post-84757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-depreciation","tag-exchange-rate","tag-leu"],"acf":[],"yoast_head":"\n
\nend of 2019 had forecast a depreciation of the Leu in the following 12 months
\nand an interest rate growth for the maturity date, short-term as well as long-term. We recall
\nthe members of the CFA are holders of the most prestigious certifications in
\nthe field of investment and financial analysis, and the developments seem to
\nconfirm their estimates. In January this year, the exchange rate for the Leu
\nremained steady, given the apparent relief on the part of investors, who had
\nbeen concerned with the deterioration of the fiscal position. Consequently, a
\nbuoyant attitude prevailed on the international financial market. Notwithstanding,
\nthe Romanian currency has been depreciated as of late, against the main
\ncurrencies. According to economy pundits, the fall of the Leu had already been
\npredicted. <\/span><\/p>\n
\n
<\/p>\n
\nFinance and Banking Analysts Association.<\/p>\n
\ncarried in December 2019, revealed an anticipatory exchange rate of 4.88 Lei
\nfor one Euro, for December 2020. The premise for such a forecast is the idea of the twin
\ndeficits. Romania has the highest current account deficit in the region,
\nstanding at around 5%, while this 5% is a warning level for a small and open
\ncountry. Also, it has one of the biggest budget deficits and will now enter the
\nexcessive deficit procedure. Such deficits require financing, that including
\nforeign financing. Moreover, what does the current account deficit mean? Foreign
\ncurrency getting out of the country, hence the exchange rate pressure. <\/p>\n
\n
<\/p>\n
\nand Banking Analysts Association believes that the depreciation of the national
\ncurrency is not going to stop. <\/p>\n
\npoor exchange rate for the Leu is to a great extent caused by the country’s
\npolitical instability. <\/p>\n
\nwith China and the coronavirus, everybody is scared. Under such circumstances,
\nthe more vulnerable currencies of the countries where macroeconomics imbalances
\nclearly exist in the system, these currencies are under attack. International
\ninvestors are not that keen on the Leu, otherwise the attack on the Leu would
\nhave been even stronger, UNQUOTE. <\/span><\/p>\n
\nprevious month, had the Central Bank not intervened to reverse the Leu’s
\ndepreciation tendency, 4.8 to 4.85 lei would have bought One Euro. The slight
\ndepreciation of the Leu is correlated with the depreciations in the region,
\ngiven that the Zlot and the Forint have also depreciated as a result of
\ninternational financial flows, says the interim Finance Minister Florin Citu.
\nCitu also said interest rates would still be on the wane, while investors’
\nconfidence will be on the rise. Acting Prime Minister Ludovic Orban also said
\nthere was no reason for suspicion or panic. PM Orban also gave assurances the
\ncountry’s economic condition was a stable one. <\/p>\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"