CHF closer to EUR. Swiss franc nears RON 4.5 threshold. Volksbank Romania freezes CHF exchange rate

Switzerland’s national coin continues its rise on the domestic market, despite CHF loan holders despair. On Monday, National Bank of Romania (BNR) announced o value trade of RON 4.4716 per CHF, an increase of 1.1 percent to a new historical high. On the same time, reference for the single currency fell by 0.77 bani to RON 4.5018, while the U.S. dollar dropped from RON 3.8863/unit record level registered on Friday to RON 3.8815/unit.

Romanian Ministry of Public Finances (MFP) comes with two solutions for Swiss franc loan holders in crisis situation which took off at the beginning of the last week: loan rescheduling and bank-specific conversion and appreciation offsetting programs. Finance Minister Darius Valcov announced will meet this week banks representatives to discuss and to find new solutions to soften the problems CHF loan holders deal with.

The Swiss franc edged lower against major crosses in choppy European trade on Monday, but remained at historical highs, as investors turned their focus to the European Central Bank meeting this week.

According to marketwatch.com, the Swiss franc hovered around parity against the euro, holding onto a 16 percent year-to-date gain against the single European currency after last week’s unexpected decision by Switzerland’s central bank to drop its euro peg. The franc EUR/CHF, +1.54 percent was last down 1 percent to 1.0044 francs. Against the dollar USD/CHF, +1.44 percent it was down 0.8 percent to 0.8659 francs – a 13 percent drop year-to-date.

On the other hand, Volksbank Romania has decided to keep the CHF/RON exchange rate at the same level with the one registered on December 31, 2014 until April 17 to help its clients deal with the loans. The exchange rate is RON 3.8035/1 CHF. The exchange rate is 17.5 percent lower than the reference one issued by the central bank of Romania on Monday (RON 4.4716/1 CHF).

Volsbank president Benoit Catel said the offer will grant the clients the needed interval to find a solution to their loans. ‘We have informed our partners and out potential buyer Banca Transilvania,’ he added.

 

BNRCHF loan holderscrisiscurrencyeuroEuropean Central BankFinance Minister Darius ValcovRON 4.5/unit thresholdsingle European currencySwiss francSwitzerland’s national coinU.S. dollar
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