The US dollar hits new record against the Romanian currency

The US dollar hit the RON 4 level for the first time since Romania’s National Bank (BNR) started keeping track of the rate, in 1985. The official exchange rate announced by the BNR on Wednesday, March 4, was RON 4.0041 per USD, up 0.37% compared to the previous day. The dollar has gained 8.6% against the RON since the beginning of this year. The increase was mainly due to the appreciation of the US currency against the Euro. The USD came close to the EUR 0.9 threshold in recent days and has an 8.7% gain on the European currency compared to December 31, 2014. Meanwhile, the EUR/RON exchange rate has been relatively stable. The EUR has been trading in a close range of RON 4.4-4.5 in recent months. The sharp appreciation of the USD has adverse effects on Romania’s economy, as Romania imports oil and gas quoted in dollars. Romanian consumers couldn’t benefit from the lower oil prices due to the evolution of the dollar. On the other hand, Romania’s exports in dollars are relatively small, as most of the country’s exports are to EU countries and are in euro. Andrei Chirileasa,andrei@romania-insider.com