A second fall for the RON against the EUR this week was recorded on Tuesday, when the official rate reached RON 4.6397 for EUR 1, while the rate against the USD was also at another historic low: RON 3.8343 for USD 1.

The rate was higher than yesterday's (July 23 ) RON 4.6009 to EUR 1. The Romanian currency has taken a nosedive in the last three weeks, when it has broken historical record after record, even though the Central Bank intervened on the market to limit its fall. Investor perception has been affected by the recent political battle, which echoed internationally. The RON is down by over 6.5 percent against the EUR compared to the rate at end 2011, which was of RON 4.3197 for EUR 1.

Romanian politicians have been commenting on the RON decreasing trend, with suspended president Traian Basescu blaming the ruling coalition the Social Liberal Union (USL) for weakening local currency. PM Victor Ponta promised the RON will be back to normal and start strengthening after the July 29 referendum to impeach the president.

editor@romania-insider.com

(photo source: Dreamstime)