Romanian currency falls against the euro after PM resigns

The exchange rate for euro announced by the Romanian National Bank rose on November 4 by 0.32% to about RON 4.4462/EUR, the highest level in the last four months. The announcement on the Prime Minister’s resignation put pressure on the national currency in the interbank market. The euro started to strengthen against the leu on Wednesday morning, due to the uncertainties caused by the announcement that the Prime Minister Victor Ponta would resign. A higher rate was recorded on July 10, when the exchange rate amounted to RON 4.4464/EUR. “Any uncertainty regarding the government is seen negatively, including for government bonds,” said Ciprian Dascalu, chief economist of ING Bank Romania, cited by Mediafax. The financial analysts are mostly worried that the Government’s resignation could cause minor or major blockages next year. “It remains to be seen how many of the good projects that have been started won’t continue. A new Government may decide to continue the line of the former one or not, which involves maintaining or reviewing some decisions on salaries, taxes, and investments,” said Florian Libocor, chief economist of BRD. editor@romania-insider.com