16 Februarie 2009

BRD expects the leu to be trading around 4 4.2 units/euro in year-end

The meltdown of the leu has already consumed its utmost potential, and the currency exchange rate is likely to hover around 4 – 4.2 lei/euro at year-end, said the deputy managing director of BRD SocGen, Claudiu Cercel.

“The depreciation of the leu has already consumed its utmost potential, thus chipping in to the adjustment of CA deficit. It doesn’t mean that we will no longer see wide-bandwidth variations”, said the representative of BRD.

He explained that as of September last year, the local currency had dipped dramatically against the single European currency, yet in the midst of a generally drowning European currency market.

Compared to September 2008, the leu slid merely 20%, same as the Czech koruna, considered slightly more stable. The Polish zloty fell 35% in the same interval, while the Hungarian forint and Russian ruble dropped 25% each”, Cercel added.

The leu peaked all-time high on January 22, 2009, at a benchmark exchange rate of 4.3127 lei/euro posted by BNR.

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