The RON may reach 4.4 per EUR in 2011 – Deutsche Bank

The national currency is expected to weaken to 4.4 against the euro by the end of next year from 4.3 now and reach 4.33 per euro in the next three months, Deutsche Bank London-based analysts say, quoted by Bloomberg

According to the financial institution’s specialists, the Romanian central bank has a “limited appetite for appreciation” because of weak economic growth expected for next year as the country emerges from its worst recession on record.

Romania tries to recover from the economic crisis with measures as the increase in the VAT and cuts in wages. Romania is relying on a 20 billion-euro international bailout to stay afloat.

The International Monetary Fund expects the economy to start growing in 2011, led by industry and exports. Deutsche Bank said the economy will probably contract 1.9 percent in 2010 and return to a growth of as much as 1.5 percent in 2011, matching the IMF’s forecasts.

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