The EUR/RON exchange rate made another leap on Friday, November 10, as investors continued to digest the Government’s fiscal measures and the increasing trade deficit.

The euro reached RON 4.639, up 0.24% over the previous day, and 1% over the value registered on Monday, November 6, according to official data from Romania’s National Bank (BNR).

The Romanian currency depreciated steeply against the euro after the Government adopted several important changes to the Fiscal Code on Wednesday. One of the main measures is aimed at stopping multinationals from exporting their profits to other countries.

BNR governor Mugur Isarescu said last week that the recent exchange rate evolution is part of a longer trend, which is also caused by the rapid increase in Romania’s trade deficit. Imports have outpaced exports this year and the trade deficit reached EUR 8.9 billion in the first nine months of this year.

editor@romania-insider.com