The EUR has strengthened on the interbank market against the RON, and climbed by 1.44 bani (RON 0.0144), more than the range variation recorded during an ordinary day, thus responding to the prospect of market uncertainties caused by the announcement that Prime Minister has submitted his mandate.
“The news of the Prime Minister’s resignation brings uncertainty on short term. We’ll see how long it takes. Any uncertainty regarding governance is seen negatively, including for the government bonds. If a new cabinet is formed quickly, the losses reverse. If the uncertainty persists, the depreciation will last longer,” said chief economist of ING Bank Romania, Ciprian Dascalu.
Before the announcement, the RON had been traded on the interbank market at RON 4.4370/EUR, and after the news, the level increased rapidly to RON 4.4468/EUR and got stable at 4.4462 units/EUR.
The variation recorded Wednesday morning is stronger than the oscillations recorded during the transactions during previous days. Thus, on Tuesday, the exchange rate traded in a range of about 0.6 bani (RON 0.006).