Euro currency trap: we live at 4.1 RON, but die at 4.8 RON

Euro currency trap: we live at 4.1 RON, but die at 4.8 RON

Evolution: The last estimations show the European currency will rise again, endearing the lives of millions of Romanian people.

Related:
Romanian budgetary deficit to reach 2.34 % of GDP in first five months

The estimations for the rate of exchange at the end of 2009 go from optimism (4.1 RON/EUR) to extreme pessimism (4.8 RON/EUR).

Food and other necessary goods imported from abroad, but especially bank loan rates could go up significantly, if the gloomy forecast turns out to be real. The central bank’s ”training” on the rate of exchange will be essential in the following period of time. 

The National Bank rarely interfered with Euro currency rate of exchange

The Euro rate has reached the historical minimum point on July 2, 2007, then had swung for more than a year around the value of 3.6 RON. Since last autumn, Euro currency went up to 4 RON, reaching the maximum level of 4.31 RON in February 2009. The National Bank of Romania, under Muhgur Isarescu’s coordination, stepped in to take off the edge of the fluctuations in the hard times.