The monetary policy of large central banks could lead to weaker pressures, but the national leu currency could depreciate if the key rate drops.
The Japanese yen and the American dollar registered the highest increases against the leu in January. Moreover, the last National Bank of Romania (BNR) foreign currency session in January found all major currencies (euro, U.S. dollar, British pound, Swiss franc, and Japanese yen) in an upward trend against the Romanian leu.
Pessimism and a lack of investor trust in currencies in Central and Eastern Europe (CEE) seem to be the main reasons for the depreciation of the leu and that of other emerging currencies.
“A financial agreement with international institutions could stop the depreciation of the leu,” according to a statement for Business Standard by Lucian Anghel, Chief Economist of Banca Comerciala Romana (BCR).
