Even though Romania's currency, RON (leu), has depreciated relatively steeply in the past weeks, compared to historic low volatility, ING Romania maintains its exchange rate forecast for this year and argues that the national currency could recover from recent losses. 

"However, it is important to look at the bigger picture: financial markets can often have such episodes of volatility, which subside when they realign with economic fundamentals. At this point, we do not consider it necessary to modify ING Bank's exchange rate forecast for the end of the year, namely, RON 5.05 per euro. This does not exclude the exchange rate remaining close to 5.10 in the immediate future," ING Bank Romania economist Ștefan Posea told Profit.ro.

The National Bank of Romania (BNR) will hold a monetary policy meeting on May 16, the very last day of the election campaign. Next week, it will also publish the new inflation report, usually during a press conference with Governor Mugur Isărescu.

iulian@romania-insider.com

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