PSD said it was concerned about the negative effects of the collapse of the leu, indicating that the sharp depreciation of the exchange rate will lead to an increase in inflation and a significant drop in the population's purchasing power, widening social polarization.
Increased volatility on the Bucharest Stock Exchange, massive infusions of speculative funds, the political crisis, an inconsistent budget policy, high growth rate of external debt, higher interest rates in developed countries, and the financial crisis on international markets are considered by PSD to be the main causes of the collapse of the national currency.
"PSD believes that present authorities were incapable of creating reaction cells to insularize the Romanian economy from the international crisis. (...) The channel through which the shock wave was transmitted to the Romanian capital market is related to the activity of foreign investment funds. As the global situation deteriorated and concerned over the fall of the Romanian economy, the latter began abandoning the Romanian market, considered immature and emerging. In a single day, €1 billion in speculative funds exited the market," indicated PSD's Economic Policy Department. (NewsIn)
