Most optimistic forecasts put euro at 4.1 RON this summer

The RON has its chance of following the last few years’ tradition of strengthening during the summer, especially since there is no more pressure from importers and from speculators on foreign currency purchases, according to dealers and analysts. However, the RON’s strengthening potential is rather limited, with the most optimistic forecasts pointing to a level of 4.1 RON per one euro. Any decline of the euro towards 4 RON would only be accidental, dealers believe. “It is true that in the summertime, there are traditionally no massive foreign currency purchases, which makes me think we will not see the euro upwards of 4.25 RON, at least until the end of August. Unlike in the past few years, now there are very few people in the market betting on a sustainable appreciation of the RON. As the euro were to approach 4.1 RON, I doubt someone would still aggressively sell foreign currency any more,” says Dragos Balaci, chief dealer of RBS Bank Romania.