Romanian Leu Ends Flat vs Euro, Dealers Suspect C-Bank Intervention

The leu ended at 3.9400/9500 per euro, unchanged from Monday, one dealer told SeeNews.

“We suspect the central bank entered the market, more precisely between 12:00 and 13:00 [local time, 1000-1100 GMT] when it sets the reference exchange rate,” the dealer said.

The leu has been losing ground in the last two weeks due to persistent macroeconomic imbalances and uncertainty about the forming of Romania’s new government following the November 30 elections. Traders are expecting the leu to sink further if the central bank does not intervene amid the political uncertainty which the vote has failed to dispel.

Romania's central bank, BNR, set its reference exchange rate, used for statistical purposes, at 3.9389 lei per euro on Tuesday, compared to 3.9249 lei on Monday. For the U.S. dollar, the reference exchange rate was set at 2.8871 lei versus Monday’s 2.9129 lei.

Interest rates on overnight leu deposits fell to an average of 10.08%/10.58% on Tuesday, from 10.54%/11.04% on Monday.

Turnover on the interbank leu deposit market rose to 2.267 billion lei on Monday from 2.254 billion lei on Friday. The BNR will issue Tuesday's figures on Wednesday.

Following are Tuesday's average bid and ask quotes of commercial banks on Romania's interbank market. They were calculated at 11 a.m. (0900 GMT) by the BNR, based on data provided by 10 commercial banks (in pct):