After reaching a new historic low last Friday, when the Romanian Government was toppled, the Romanian currency the RON further slipped on Wednesday , reaching RON 4.4239 on the money market.

The official rate is still at RON 4.3970 from Monday (April 30 ), as May 1 was an official free day in Romania. The Romanian Central Bank should issue a new official rate today (May 2 ) at noon.

The EUR was selling at RON 4.4140 on Wednesday at 11,00 on the money market, while when bought, its price was of RON 4.4239. Analysts have been expecting a volatile exchange rate until the intentions of the new Govermment become more clear. The Prime Minister designated Victor Ponta announced the members of the new Government on Tuesday evening (May 1 ). We wrote about it here. 

The Romanian currency the RON reached a new low on Monday (April 30), when the EUR was trading at RON 4.4045, mainly due to uncertainties about the measures the new Government in Romania will take after the cabinet led by Mihai Razvan Ungureanu was toppled.

The rate even exceeded RON 4.4 per EUR after 13,00 on the money market, when the Romanian Central Bank announced the reference rate, which is of RON 4.3970, a new historic low.

On Friday (April 27 ), when the Government was dismissed after a no-confidence vote in the Parliament, the EUR was selling at RON 4.4010. The official rate on Friday was of RON 4.3747.

The RON has been falling since the beginning of the year, with its previous lowest rate being RON 4.3794 in March.

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.

The Romanian lei was a 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

(photo source: Dreamstime)