The failure of the government puts pressure on exchange rates
The Tuesday’s no-confidence vote has led to the first demise of the government in the post-communist era, heightening pressures over the local currency. Exchange rates hovered yesterday near 4.3lei/euro, although traders interviewed by Wall-Street speculate the intervention of the central bank.
Yesterday’s events are expected to reflect in the future performance of the local currency. It remains to be seen whether the local currency is capable of withstanding pressures, or break through the 4.3lei/dollar psychological barrier defended by the National Bank of Romania.
For today, NBR posted an official exchange rate of 4.2897lei/euro, up slightly from the previous session. Analysts expect the local currency to devaluate further and don’t rule out the possibility of the leu to touch a new record low vs the single European currency.
On Tuesday, October 13, 2009, the former Government under leadership of PM Emil Boc lost a parliamentary vote of confidence, with 176 votes against and 254 for.
Yesterday’s events are expected to reflect in the future performance of the local currency. It remains to be seen whether the local currency is capable of withstanding pressures, or break through the 4.3lei/dollar psychological barrier defended by the National Bank of Romania.
For today, NBR posted an official exchange rate of 4.2897lei/euro, up slightly from the previous session. Analysts expect the local currency to devaluate further and don’t rule out the possibility of the leu to touch a new record low vs the single European currency.
On Tuesday, October 13, 2009, the former Government under leadership of PM Emil Boc lost a parliamentary vote of confidence, with 176 votes against and 254 for.