Romania’s currency slips amid politics, fundamentals as country faces FX bond test
Romania needs to raise some EUR 3.5-4 billion through FX bond issues on international markets by November 7, which will test the country’s financing capacity amid the current political turmoil.
iulian ernst · Journalist
· 1 min read
Sources cited by Economica.net estimated that Romania should have a designated government by October 16-17 in order to be able to issue FX bonds by November 7. Given the high level of US bond yields, Romania is expected to seek financing on other markets, including Europe and possibly Asia, such as Japan, the same sources said.
The Romanian leu has continued to depreciate, with the euro crossing the RON 5.35 level from below RON 5.25 during the summer, following a sharp depreciation episode after the third attempt to form a government failed in Parliament on September 30.
