Romania’s central bank spokesperson Dan Suciu addressed concerns related to the local currency’s weakening, explaining that the depreciation these days is seasonal and also reflects the higher imports generated by the Black Friday campaigns.

However, he also warned about the fiscal situation that has to be settled because it is “more complex than anticipated," local Agerpres reported. 

The euro appreciated by another 0.07% versus the Romanian leu (RON) on November 14, compared to the day before, hitting a new high of RON 4.7635 (for EUR 1). Suciu linked the pressures on the exchange rate to the foreign trade and current account deficit figures recently released.

However, this comes somehow against the central bank’s comments in the latest release issued along the November 6 monetary policy decision that points to “moderation of the annual pace of increase of the negative balance on trade”. The current account deficit data published by Romania’s National Bank (BNR) on November 14 indicate 41% year-on-year widening of the current account deficit in the third quarter of the year, compared to 62% expansion in Q2.

The 12-month rolling current account gap has stabilised since April around EUR 10.5 billion (just under 5% of GDP). The trade with goods slightly improved in Q2-Q3 compared to the previous two quarters. The only new element in the foreign exchange market is the fiscal position that finance minister Florin Citu said to be “worse than imagined”.

editor@romania-insider.com

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