RON competes with zloty for strongest currency in the region again

The RON is once again striving to become one of the strongest currencies in the region, having resisted the wave of depreciation that occurred on the emerging markets over the last few days. The euro traded at slightly less than 4.22 RON yesterday in Bucharest, while in Warsaw it surpassed 4.2 zloty after the Polish currency had strengthened to almost 4 zloty/euro early in the month. Analysts say the strengthening of the RON over the past few days has been once again helped by discreet interventions of the NBR. “On Wednesday I did not notice an intervention of the NBR, with the big payment orders coming from foreign players. Today, on the other hand, I think the bank wanted to prevent the RON from depreciating beyond 4.23 RON/euro. The NBR is most likely seeking to keep the exchange rate at a certain level and to send a positive message to the market,” says Nicolaie Alexandru Chidesciuc, chief economist of ING Bank. The NBR calculated an exchange rate of 4.2232 RON per euro, 0.53% less than the previous level. On the interbank market the euro climbed in the first part of the day to 4.2350 RON, but fell towards 4.21 RON in the afternoon. The RON’s appreciation was also aided yesterday by the good news coming from the International Monetary Fund, according to which Romania could receive the next two tranches of its loan in February, as well as by the appointment of a prime minister to the helm of the new government.