Euro recorded new historic high on Thursday: 5.1222 lei

The national currency depreciated on Thursday against the euro, which was calculated by the National Bank of Romania (BNR) at 5.1222 lei, on the rise by 2.31 bani (0.45%) against the previous quotation of 5.0991 lei, recording a new historic high.   The leu also lost ground against the US dollar, which was quoted at 4.5369 lei, on the rise by 4.71 bani (+1.05%), against Wednesday, when it was 4.4898 lei.   The national currency depreciated against the Swiss franc, calculated by BNR at 5.4930 lei, on the rise by 4.64 bani (0.85%) against 5.4466 lei, the previous quotation, recording a historic high.   A gram of gold depreciated against the Swiss franc, calculated by BNR at 5.4930 lei, on the rise by 4.64 bani (0.85%) compared to 5.4466 lei, the previous quotation, recording a historic high.   A gram of gold got cheaper at 487.0692 lei, from 487.1276 lei, at the previous session.   In an effort to curb the currency’s decline, the National Bank has intervened in the market, leading to a notable rise in interest rates. The three-month ROBOR index surged to 7.25%, the highest level since January 2023. Over the past few days, the central bank has spent at least 7 billion euros to stabilize the currency.   Despite attempts to soften his rhetoric and position himself as “Romania’s Meloni,” George Simion has so far failed to ease public or investor concerns. Simion has announced plans to form a government composed of the far-right AUR and POT parties if he wins the second round of the presidential elections on May 18.   A poll published on Wednesday shows Simion with 38.9% support, compared to 31.3% for Nicusor Dan. Another 14.7% of respondents were undecided, while 8.9% declined to answer.   Excluding undecided and non-respondents, the results suggest Simion could secure 55.4% of the vote, with Dan at 44.6%, according to the Verified Institute.   The possibility of early elections has raised concerns in Romania’s business community, as the process could take several months, prolonging political instability. Interim Minister for European Funds Marcel Bolos said on Thursday that there are no discussions about a potential agreement with the International Monetary Fund (IMF), adding that IMF involvement typically comes with “harsher reforms” than those outlined in Romania’s National Recovery and Resilience Plan.He also expressed hope that this emotional reaction from markets and investors would subside soon.   Romania currently has the highest budget deficit in the European Union — 8.65% of GDP in 2024, up from 5.61% in 2023. The cost of servicing state debt remains very high due to the country's weak credit ratings (Fitch: BBB-, S&P Global: BBB-, Moody’s: Baa3).