Analysts said that the positive regional sentiment, the holidays, when Romanians abroad send home money, as well as a possible intervention by the central bank were the main reasons for the strengthening of the leu.
“The recent appreciation of the exchange rate is the effect of BNR intervening on the market and a positive sentiment which supported the national currency. We are expecting an appreciation of the leu, which will continue in the near future, considering the Ministry of Finance attracted €2.2 billion from the internal market in November, by way of foreign currency auctions, and has scheduled other state bond auctions in December,” said Nicolaie Chidesciuc, Chief Economist of ING Bank.
The Chief Economist of Banca Comerciala Romana, Lucian Anghel, indicated that if Romania has a new government, and the agreement with the International Monetary Fund is met, then the leu-euro exchange rate in 2010 will strengthen compared to the average in 2009. According to BNR data, the average leu-euro exchange rate was RON 4.2384/€1 in the 11 months of this year.
“The leu appreciated last week, because investors are waiting for an improvement in the political situation, but also because the central bank applies a policy of managed floating of the exchange rate,” indicated Anghel.
The Investment Manager of Eureko, Radu Craciun, said that the leu was part of a regional trend, following the appreciation of all other currencies of Eastern European countries. The official added that stock market indexes in the regions posted increases, and the appetite for risk of investors was rising.
