A better-than-expected Q3 GDP could help the leu catch its breath after recent turmoil, official say

The GDP does not usually influence the exchange rate yet a level beating estimates could bring back confidence and strengthen the leu, he said. Also, the money coming from trading contracts and entering Romania could have their say over the exchange rate, a key factor being the term of payment. “The exchange rate is a valve through which certain economic tensions can be released,” Georgescu explained. The BNR official’s words come after a period of turmoil for the leu, which fluctuated from 3.11 lei per euro to 3.69 lei per euro.

Players on the money market believe BNR last week intervened and stop the leu from falling at 3.7 lei against the euro. The National Statistics Institute is expected to release on November 30 data on the third quarter and nine-month GDP.

Source: NewsIn