Romania's central bank will prevent currency depreciation in case of Brexit

Central banks in Romania, Croatia, and Serbia will intervene in the market to prevent a too big depreciation of their national currencies in the case of Brexit whereas the central banks of Poland and Hungary will allow a slightly higher volatility, according to an analysis by Erste Bank. The Romanian currency leu depreciated by less than 1% against the euro in the past week and a half. During this period, the investors’ worries regarding a possible exit of Great Britain from the European Union have intensified, leading to a higher volatility in the markets. “A possible Brexit could cause further losses for the leu, but we estimate that the central bank will prevent the extreme volatility,” reads the report published yesterday, cited by local Profit.ro. Most of the currencies in Central and Eastern Europe (CEE) recorded a slight appreciation against the euro at around 3:20 PM yesterday, as a survey in the UK showed a three point advance for Brits who want the country to remain in the EU. editor@romania-insider.com