Euro overshoots 4.3 RON mark again, after three months

The euro bounced back above the 4.3 RON threshold on the Bucharest market, after players reacted to political turbulence, with Deputies yesterday managing to generate tension by approving a plan to cut VAT for food, which would risk, however, derailing the agreement with the IMF.

The NBR calculated an exchange rate of 4.3084 RON/euro, 1.44 bani above the previous level. This is the first time the euro rises back about the 4.3 RON threshold since July.
The renewed decline came amid an already tense context, with the government facing a new no-confidence motion, while internationally investors are again shifting to very safe assets, fearing a new global recession.
“Foreigners have loaded their positions against the RON and are waiting for a shock. Should the Government fall, the NBR is likely to let the euro climb toward 4.5 RON as a warning,” comments the dealer of a domestic bank. The no-confidence motion was presented yesterday in Parliament, and the vote is scheduled for October 27.