EUR/RON exchange rate exceeds the 4.60 threshold to reach 4.6198 units, highest in the past 5 years

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The National Bank of Romania (BNR) has announced on Wednesday an exchange rate between the European currency and the national currency of 4.6198 units, thus above the 4.60 units threshold it attempted to reach during the past several months. It is the highest exchange rate between the two currencies in the past five years and four months.

The EUR has appreciated by 2.30 bani up to RON 4.6198, whereas the USD has appreciated by 0.64 bani to RON 3.9810 and the Swiss Franc up to RON 2.9869. The GBP has depreciated from RON 5.2257 to RON 5.2251.

During the inter-banking market trading on Wednesday, the EUR reached RON 4.63.

The depreciation of the national currency is considered by analysts as a result of the turmoil regarding the so-called ‘tax revolution’ promoted by the Government and to the statements made by BNR Governor Mugur Isarescu on Tuesday regarding expectations in terms of allowing higher volatility for the national currency..

“We anticipate a statistical peak of inflation in the first quarter of 2018,” BNR Governor Mugur Isarescu said on Tuesday. “The new scenario highlights the outlook of significant acceleration of inflation over short term, followed by a more tempered development in the last quarter of 2018. Against the previous report, the forecast annual inflation rate has been seriously revised upwards over short term,” Isarescu said.

Asked if BNR would intervene to moderate inflation in 2018, Isarescu said “we expect that in the second quarter we have a statistical peak of inflation, because in the first quarter in 2017 the rate was very low. There is no reason to make decisions that could shock the economy, however if the peak will prove to be more than a statistic one, of course we will react.”

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