Romania’s RON hits fresh 5-month high vs. EUR

Sorin Melenciuc 22/05/2018 | 13:11

Romania’s currency, RON, rose for the second day in a row against the European single currency on Tuesday, the exchange rate falling to 4.6225/EUR, the lowest level since December 19, 2017, National Bank of Romania (BNR) data show.

On Monday, the reference exchange rate was RON 4.6228/EUR.

The Romanian currency gained 0.9 percent against the European single currency since May 2.

Experts say the RON’s appreciation is due to interest rate hike and money market interventions decided by the central bank.

On May 7, Romania’s central bank raised the monetary interest rate from 2.25 percent to 2.5 percent, the highest level since February 2015, in line with economists’ expectations, who see the decision as a consequence of upward revision of the inflation forecast.

Following the central bank’s move, Romania’s money market rate (ROBOR), the main indicator that sets the interest rates for RON currency borrowers, reached a 3.5-year record of 2.75 percent. On Tuesday, 3M ROBOR maintained to 2.75 percent.

The Romanian central bank also had six open market operations during the last six weeks, absorbing excess liquidity in the market.

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Sorin Melenciuc | 29/11/2022 | 10:17

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