The US dollar reached an all-time high against the
\nRomanian leu, passing 5 lei on Thursday and outperforming the euro, which was
\nofficially 4.94 lei. The exchange rate published by the National Bank of
\nRomania is an indicator of many factors, from the international political
\ncontext to the level of trust in international markets. It must be noted,
\nhowever, that the central bank in Bucharest calculates the dollar-leu exchange
\nrate based on the dollar’s international exchange rates against the euro,
\nwhich, like other currencies, has also been depreciating against the US dollar,
\nwith investors fearing that the European Union’s economy may suffer from the
\nconsequences of the war in Ukraine. The turbulence on the hard currency market has
\nfurther increased after the Russian president Vladimir Putin ordered a partial
\ncall-up of reservists, which paves the way for a major escalation of the
\nconflict. The war has entered its seventh month, and Russia is losing ground on
\nthe battlefield. <\/p>\n
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Traditionally, in times of big economic crisis the US
\ndollar is the preferred currency of investors, who have more faith in the
\nresilience of the United States’ economy. Moreover, the Federal Reserve, the
\ncentral bank of the United States, has been raising the interest rate at a more
\nintense pace than the Central European Bank in its fight against the inflation
\nrate, which has reached alarmingly high levels. The dollar’s passing the 5-lei
\nexchange rate brings an unhoped for gain for people who keep their savings in
\ndollars and for companies exporting to the US and other countries that use the
\ndollar in transactions. <\/p>\n
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On the other hand, the higher leu-dollar exchange rate
\nmakes Romania’s imports in dollars more expensive, deepening the trade deficit
\nand the current account deficit and causing imported inflation. Companies with
\nloans in dollars are also affected by the appreciation of this currency. In
\nRomania, the effects will be felt especially in respect of imports of raw
\nmaterials, including oil, and will probably also be reflected at some point in
\nthe price of fuel at filling stations, despite some slight price reductions
\nseen recently, especially for petrol, as a result of lower oil prices on
\ninternational markets. <\/p>\n
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There will also be more pressure on the price of
\nimports from a series of countries from outside the European Union, especially
\nthe United States, including in the area of cars and electrical equipment.
\nFinally, travels and holidays to certain countries, including some of the Romanians’
\npreferred destinations, like Egypt and Turkey, will most likely become more
\nexpensive. With respect to the macroeconomic indicators, the dollar’s
\nappreciation will be reflected in a rise in the cost of the state’s loans in
\ndollars and the share of the foreign debt in the Gross Domestic Product. (CM)<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
The leu-dollar exchange rate reaches all-time high, passing 5 lei on Thursday.<\/p>\n","protected":false},"author":106,"featured_media":93270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[40668,30514],"coauthors":[],"class_list":["post-93269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-dollar","tag-exchange-rate"],"acf":[],"yoast_head":"\n