The Romanian leu (RON) fell versus the euro for the fifth consecutive day to a new historical low. The National Bank of Romania (NBR) posted an official rate of 4.3783 RON for one euro on Friday (March 16).

This year, the RON lost about 1.5 percent against the euro, making it harder for people who have to repay loans in euros of for those who have to pay rent. Also, the RON depreciation affects the returns of foreign portfolio investments in Romania, but helps Romanian exporters.

From an exchange rate of RON 4.07 to the euro at the end of April last year, the rate reached a peak of RON 4.36 against the euro in November. The Romanian currency followed a similar evolution path as in 2010, when it went from a rate of RON 4.07 to the euro in March to a peak of RON 4.37 in June 2010.

Romanian lei was stronger currency in 2008, when the average rate was RON 3.68 per euro, but international turbulence sent it plummeting to an exchange rate of RON 4.23 against the euro in 2009. Last year, the average rate was RON 4.20/EUR 1.

editor@romania-insider.com