Citibank: RON to strengthen to 4.12 RON/euro

The RON could strengthen towards the end of the year to 4.12 RON per euro, compared with the previous forecast of 4.20 RON/euro, according to analysts of American bank Citi. “We admit that the RON recovery in response to the negotiation of the accord with the IMF and to the recent improvement in investor sentiment has been somewhat stronger than we had expected. Under the circumstances, we expect a slight strengthening, to around 4.12 RON/euro towards the end of the year, compared with our previous 4.20 forecast,” say Citibank analysts. This is the first forecast of a leading foreign bank anticipating a strengthening of the RON. On the other hand, the budget adjustment approved on Saturday by the Government via an emergency ordinance considers an exchange rate forecast of 4.30 RON/euro, while the annual budget, approved in February, was built based on a 4 RON/euro rate. Finance Minister Gheorghe Pogea explained this was the new exchange rate suggested by the National Forecasting Commission.