Romanian currency drops to lowest level in history

The EUR/RON exchange rate recorded a new high yesterday at noon. The euro was quoted yesterday at RON 4.6495 according to Romania’s National Bank (BNR).

The Romanian currency leu thus reached the lowest level in its history against the single European currency.

On August 3, 2012, the Romanian currency recorded the second lowest level in its history, namely RON 4.6481 per EUR 1. The level of over RON 4.6 per EUR 1 has not been reached in the last five years and four months.

The leu’s depreciation is related both the current tax uncertainties, as well as the more relaxed exchange rate policy announced by the central bank. The Romanian currency’s downtrend is also determined by the higher trade deficit and current account deficit, according to BNR representatives.

However, the EUR/RON exchange rate spiked after the Government adopted the emergency ordinance that amends the Fiscal Code last Wednesday. The changes will enter into force from January 1, next year.

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