BCR: Short-term variations for Romanian currency after US elections

Donald Trump's election as the new US president will have more effects on the countries with which America has intense trade relations, which is not Romania’s case, according to analysts of the Romanian lender BCR. Trump could bring protectionist measures related to trade and the movement of labor, which could affect its neighboring countries, and the countries with a trade surplus in the relationship with the U.S., said Eugen Sinca, BCR chief analyst. On the short term. the emergent currencies, the Romanian currency leu included, could experience higher variations, but the local market will calm down, as the capital flows in dollars are not very present in Romania. “Therefore, any withdrawal of speculative capital will be lower in Romania than in other emerging countries,” Sinca added. BCR has kept its exchange rate forecast of RON 4.51 per EUR 1 for the end of the year. In the first seven months of the year, Romania’s exports to the U.S. totaled some EUR 600 million. editor@romania-insider.com