Romanian Leu Closes Almost Unchanged vs Euro

The leu ended at 4.2800/2850 per euro, compared to 4.2805/2835 per euro on Friday.

The leu opened at around 4.28 per euro and almost touched 4.29 level in the early trade on political tension, one dealer told SeeNews. It then recovered in line with other currencies of emeging markets in the region.

The market is expecting the outcome from Tuesday’s non-confidence vote against the country's minority government of the Liberal Democratic Party, PD-L, the dealer said.

Romania’s Constitutional Court on Monday declined to rule on the legality of the no-confidence motion, opening the way for Parliament to vote on it on Tuesday.
The motion was filed earlier this week by two opposition parties, the National Liberal Party and the Democratic Union of Hungarians in Romania UDMR. The Social Democratic Party, which left the ruling coalition last week, has said it would also back the motion.

Romania’s central bank, BNR, set its reference exchange rate at 4.2840 per euro on Monday, compared to 4.2776 per euro on Friday. For the U.S. dollar, the BNR set its reference exchange rate at 2.9078 versus Friday’s 2.9014.

Turnover on the interbank leu deposit market rose to 2.548 billion lei on Friday from 1.667 billion lei on Thursday. The BNR will issue Monday’s turnover figures on Tuesday. BNR on Monday injected 11.03 billion lei on the interbank money market through a two-day repo deal at a rate of 8.0%.

Interest rates on overnight leu deposits rose to 9.97%/10.51% on Monday from 8.57%/9.07% on Friday.