Romanian currency slips as political tensions rise in Romania with ongoing presidential impeachment

Political tensions in the country and the rapid changes in the Romanian parliament, plus the start of the presidential impeachment procedures sent bad signals to the market and pushed the RON/EUR exchange rate up, weakening the local currency. The RON ended the day on Wednesday (July 4 ) at a rate of RON 4.4715 per EUR, after quotations on the money market were even higher during the day. The RON was trading at 4.45 per EUR on Tuesday (July 3 ).

The Social Liberal Union (USL) is currently reading the request to impeach the President in the Romanian Parliament, with the vote set to happen tomorrow, on Friday (July 6 ). According to pundits, the Romanian Central Bank interfered with the market to help the RON, so the rate was slowed down. The USL changed the head of the Senate, the second most important person in the country after the president, and the head of the Chamber of Deputies. The presidential impeachment procedure can start if supported by at least a third of MPs, then, if support is gained in parliament the president is immediately notified. If the proposal is approved, a referendum to dismiss the president will be organized within 30 days. Romania’s president Traian Basescu (in picture) was suspended for 30 days in 2007, but he was not dismissed after the referendum. If the referendum dismisses the president, the new head of the Senate Crin Antonescu will become the interim president. The Government will then have to organize presidential elections within three months. editor@romania-insider.com (photo source: arhivafoto.ro)