Romanian currency plunges to new low as political tensions further climb
The Romanian currency leu – RON – went down to a new low on Friday (July 13), when the official rate against the EUR was of RON 4.5495, the new historic low. The previous rate on Thursday was of RON 4.5252, with the previous record low at the beginning of the week, at RON 4.5275.
The RON/USD rate also fluctuated. The latest official rate was of RON 3.7274 for the USD, a new record.
The RON went down by 5.3 percent against the EUR compared to the end of 2011, when the final rate was of RON 4.3197 for the EUR. Pundits say the Central Bank in Romania does not seem to fight the evolution of the local currency and allows a higher volatility.
The RON started to weaken two weeks ago, when political tensions escalated between the main political parties in Romania and after the country's president was suspended.
editor@romania-insider.com
(photo source: Dreamstime)
