24.09.2021

THE ROMANIAN LEU HIT A NEW RECORD LOW

The Romanian leu weakened to a record level against the euro amid growing political uncertainty in the country, central bank figures show.

Romania's central bank set its reference rate at 4,995 lei per euro on Wednesday, down 0.02% from Tuesday's value, SeeNews reported.

On Wednesday morning, the Romanian currency traded between 4.9460 and 4.9520 per euro on the interbank market, local media reported.

The Association of Investment Professionals (CFA) forecasts an exchange rate of 4.9829 lei per euro over the next six months and 5.0455 lei per euro over the next 12 months.

Leia has been weakening since early September following the resignations of coalition government ministers. The "apple of discord" was an urgent decree for a 50 billion lei (10.1 billion euros) funding scheme for rural development. Because of him, liberal Prime Minister Florin Chitu fired Justice Minister Stelian Ion. In response, the party that nominated the minister withdrew its support for the prime minister and cast a vote of no confidence in the government.

The Constitutional Court is expected to rule on September 28 on whether the no-confidence vote is legal.