Historic depreciation of the national currency tends to intensify and, beyond intervention on the foreign exchange market, the emergency solution could be raising interest rates to curb the weakening of the leu, economic consultant Adrian Negrescu said."The historic depreciation of the national currency tends to intensify and I think the moment has come for the BNR [the National Bank of Romania] to intervene. Beyond intervention on the foreign exchange market, I think the emergency solution will be to raise interest rates in order to temper this depreciation snowball that is taking shape on the horizon. An emergency meeting of the BNR could lead to an interest rate hike in an attempt to provide foreign investors with arguments to keep their placements in Romania. Unfortunately, such a decision will inevitably lead to higher financing costs for the economy and for ordinary people. It will in fact lead to recession," Adrian Negrescu explained on Tuesday in a Facebook post.According to him, the BNR is faced with a choice between the risk of hyperinflation generated by the depreciation of the exchange rate and the recession already in place.The national currency depreciated on Tuesday against the euro, which was calculated by the BNR at 5.2180 lei, up by 1.82 bani (+0.35%) compared with the previous quotation of 5.1998 lei, marking a new all-time high. The leu also lost ground against the US dollar, which was quoted at 4.4644 lei, up by 2.68 bani (+0.60%) compared with Monday, when it stood at 4.4376 lei. The national currency also weakened against the Swiss franc, calculated by the BNR at 5.6974 lei, up by 3.04 bani (+0.54%) from the previous rate of 5.6670 lei.The censure motion initiated by MPs from the Social Democratic Party (PSD), the Alliance for the Union of Romanians (AUR) and PEACE - Romania First against the Government led by Liberal Ilie Bolojan was adopted by Parliament on Tuesday. A number of 281 votes were cast in favour, four against and three were annulled.(Photo:https://www.facebook.com/)
The Bucharest office market has shown early signs of recovery, driven by a visible increase in pre-lease transactions, highlighting a renewed occupier appetite for future office spaces. The current development pipeline, exceeding 215,600 sq.m, the highest level in recent years, is expected to be gradually absorbed, according to data from the Cushman & Wakefield Echinox […]
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