February 25 (SeeNews) - The Romanian leu hit a new all-time low against the euro on Tuesday, amidst political uncertainty following the fall of the government led by Ludovic Orban.
Romania's central bank, BNR, set its reference exchange rate at 4.8079 lei ($1.08/1.0 euro) per euro on Tuesday, 0.11% weaker than on Monday.
On Tuesday morning, the leu changed hands at a rate of between 4.8090 and 4.8069 per euro, according to real-time interbank forex trading data published by information portal Conso.ro.
CFA Romania, an association of investment professionals, said last month that they expect an exchange rate of 4.8823 lei per euro in the next six months and 4.83 lei per euro in the next 12 months.
On Monday, Romania's Constitutional Court on Monday ruled that president Klaus Iohannis should nominate a candidate for prime minister who can win the support of a parliamentary majority.
Earlier this month, the opposition Social Democrat Party (PSD) challenged before the top court the decision of the president to nominate Ludovic Orban, leader of National Liberal Party (PNL) for prime minister-designate for a second time.
Orban was tasked with forming a transitional government on February 6 - a day after parliament dismissed his minority cabinet, bringing closer the possibility of early election. If parliament refuses to endorse Orban or another nominee for prime minister, the president can dissolve parliament and call early elections.
Following the vote in parliament, Orban said that he will deliberately seek the rejection of the first two proposals of the president in order to trigger a snap general election that PNL hopes to win, as the party is far ahead of PSD in recent opinion polls. President Iohannis has said too that he favours the early election scenario.
(1 euro=4.8026 lei)