fbpx

SIMILAR ARTICLES

Minister Ghinea: PNRR is not just an investment list but also a list of structural reforms that the Commission has been asking from us for years

The Minister of European Investment and Projects, Cristian Ghinea, states that “PNRR is not Santa’s investment list; it is also a list of assumed reforms… Mai mult

New Renault boss: “Dacia is a miracle. It’s time for the brand to flourish”

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica’s Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

“Putting capacity growth projects planned in Morocco and Romania on hold” – is one of the measures included in the draft plan of Renault Group… Mai mult

Political crisis /Leu-euro exchange rate, at lowest average since referendum to dismiss Traian Basescu

de Adrian N Ionescu 17.6.2017

The National Bank of Romania (BNR) announced an average rate of 4.5872 lei on Thursday, following the sharp depreciation in the first part of the day on the interbank market, from 4.5775 lei/euro on Wednesday to 4.5871 at 13.00 on Thursday.

This is the weakest average BNR exchange rate against the euro since August 3, 2012 (the political crisis caused by the referendum for dismissing Traian Basescu), when it was 4.6481 lei/euro.

BNR has not intervened, according to market sources, as the central bank was not interested in supporting the national currency against the trend. In fact, BNR Governor Mugur Isarescu said two months ago that “if we considered that a 1-2% change is a depreciation, I believe that would be an overstatement compared to the domestic and international tensions occurred in the first quarter.”

In February, when the rate exceeded the 4.5 lei threshold, the Governor said that “there is no room for the exchange rate appreciation. There is not much room, not to say there is no room at all.”

Romanian leu lost 1.1% against euro on the interbank market since the beginning of the year and 0.4% this month.

Prior to the crisis, banks forecasted various degrees of depreciation for the national currency: Erste Group Research saw the euro exchange rate at 4.62 lei and Banca Transilvania at 4.54 lei.

Market evolution

Romanian leu apparently started calmly the day after the ruling coalition withdrew the political support for the cabinet led by Sorin Grindeanu, and marked 4.5764 lei at 9.10 on the interbank market. It was already the highest level since 19 October 2010 (4.5829 lei) that followed a maximum level of 4.5795, unsustainable in market terms.

Political events seemed to have been already “included in the price”, and the market even tested a slight strengthening tendency for the national currency, with the euro that registered 4.5747 lei at 9.20.

At 11.30, though, the European currency was in a full appreciation rally, reaching the maximum of the last five years on the interbank market, at 4.5890 lei, the highest rate since 3 August 2012, when the average rate was 4.6263 lei.

In July 2012, the European currency sharply appreciated by almost 4% in one month, from 4.4494 lei on 29 June, amid the political uncertainties surrounding the referendum for dismissing the Romanian president, according to the Bloomberg data.

At 12.35, euro was adjusting its growth to 4.5870 lei.

Mergeți în homepage ›

Publicat la data de 17.6.2017

Lăsați un comentariu


NEWS

New Renault boss: “Dacia is a miracle. It's time for the brand to flourish"

Luca de Meo (foto), the new general manager (CEO) of Renault group, considers that Dacia project proved to be a miracle and that no one… Mai mult

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica's Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult