February 1 (SeeNews) - The Romanian leu weakened on Wednesday amidst massive protests triggered by the adoption of a controversial government decree easing or eliminating penalties for corruption offences.
Romania's central bank, BNR, set its reference exchange rate at 4.5240 lei per euro on Wednesday, 0.45% weaker compared to 4.5038 lei per euro on Tuesday.
On Wednesday morning, the leu changed hands between 4.5045 and 4.5335 against the single currency, according to real-time interbank forex trading data published by local portal Conso.ro.
The leu eased as a result of pricing out political risks after some 50,000 people protested on Tuesday night and Wednesday morning in Bucharest and other Romanian cities against the government decree seen as an attempt to weaken the fight against corruption and help several politicians avoid criminal prosecution on graft charges.
The emergency decree, approved by the government on Tuesday night and hastily published in the country's Official Gazette, decriminalises several offences and makes abuse of office punishable by jail terms only if that offence has resulted in a loss of more than 200,000 lei ($47,500/44,000 euro).
The government also decided on Tuesday to send to parliament a draft pardon bill which, if adopted, will set free inmates serving sentences of up to five years for non-violent crimes.
The country could be headed towards a political crisis as Raluca Turcan, leader of opposition National Liberal Party (PNL), said on Wednesday that the party will file a censure motion against the government. Turcan also urged the other parties in parliament to leave it and thus trigger early elections.
A legal solution could emerge though, as on Wednesday morning, president Klaus Iohannis said that the emergency decree and pardon bill can be challenged at the Constitutional Court.
Romania's budget for 2017 is also surrounded by controversy, as on Tuesday, the president said that the 5.2% economic growth rate projected in the 2017 budget draft is too optimistic.
(1 euro=4.5240 lei)