The leu - the only currency in the region which depreciated this year

The leu accelerated the trend of depreciation over the last week, due to the domestic

political tensions, and separated from the regional evolutions. The Romanian

currency is the only in Central and Eastern Europe which dropped against euro since

the beginning of the year, show the data analysed by Profit.ro.

Euro reached new historic levels against the leu at each of the last four meetings for

tradings and which is closer to the threshold of 5 lei at the official quotation of BNR.

The weakness of the leu is deepened by the political crisis which could end with the

destruction of the governing alliance after the USR-PLUS ministers resigned from the

Citu Cabinet. ‘ The government of the premier Citu is close to collapse. This

influenced both the currency and the sovereign bonds’ showed a notice of Erste

Research, quoted by Profit.ro.

Euro increased with almost a quarter percentage point against the leu over the last

week, while it was stable against the Polish Zlot and the Czech Krone and dropped

against the Hungarian Forint by 0.4%. The Forint is on a growing trend, after the

central bank increased the key interest and entered a cycle of strengthening of the

monetary policy. The expectations of the analysts are that the central bank of Poland

is going to increase the key interest, although the governor Adam Glapinski stated

that it was not the case.

The Romanian leu went the worst from the Central and Eastern Europe this year –

euro increased against the Romanian currency by almost 2% while it dropped against

the Zloty by 1%, by more than 3% against the Krone and over 4% against the Forint.

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