The lei continued to depreciate against the European currency, BNR announced a rate of 4.9783 lei/euro, which is 0.1% more than the previous day.
81% of CFA Romania respondents expect the lei to depreciate in the next 12 months (compared to the current value). Thus, the average value of expectations over a 12-month exchange rate horizon is 5.0274 lei per euro.
The devaluation is taking place against the background of structural problems in the economy – a high budget deficit, a huge trade deficit, a chronic lack of reforms, and all because of a poor history of access to funds provided by the EU through the PNRR.
The euro exchange rate, which is “stuck” at or around 5 lei, affects you in various ways. Among the most important: your loan rates will increase (if you borrow in euros), your food will become more expensive (three-quarters of imports are paid for in euros) and your vacation will be more expensive if you plan to take it in Europe.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.