Romania’s currency, RON, declined on Monday against the European single currency for the econd day in a row, the exchange rate rising to 4.6578/EUR, the highest level since August 16, National Bank of Romania (BNR) data show.
On Friday, the reference exchange rate was RON 4.6559/EUR.
US dollar gained 0.15 percent to 3.9575 RON.
RON’s depreciation is normally due to higher liquidity in the money market but interest rates maintained to 2-week high.
Romania’s three-month money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, stood on Monday at 3.14 percent, the highest level since September 6.
The biggest worries about Romania are its fiscal policy, political situation, and the external standing, while a possible excessive deficit procedure by the European Commission might bring troubles for RON, Ebury Romania CEO Johan Gabriels recently said in a commentary sent to Business Review.