Romanian Leu Strengthens After Presidential Election Results

The Romanian leu appreciated sharply on Monday morning after Romania elected a pro-European president. The euro is trading at 5.04 lei, down from a peak of 5.12 lei reached after the first round of the presidential election on May 4, in which extremist George Simion came in first place.

The leu appreciated by more than 1.2% compared to Friday’s close, on what appears to be a closing of speculative positions against the Romanian currency. However, the political outlook remains uncertain until a parliamentary majority and a government with a reformist agenda are defined.

Reuters writes that “Nicusor Dan’s first challenge will be to appoint a prime minister and quickly form a new government majority to address the problem of the largest budget deficit of an EU country and to try to avoid a downgrade of the country’s rating.

As an independent mayor with two terms, he has experience in negotiating majorities and a track record of motivation, having run twice for the leadership position in the Romanian capital before being elected, on his third attempt.”

After the first round of presidential elections, when extremist candidate George Simion had come first in rankings, euro exchange rate exceeded the 5 lei threshold.

Nicusor Dan called for calm, stating in a press conference held back then, that there is no reason to panic.