February 28 (SeeNews) - The Romanian leu hit a new all-time low against the euro on Friday amidst continuing political uncertainty following the dismissal of the centre right-cabinet of Ludovic Orban, central bank data showed.
The central bank, BNR, set its reference exchange rate at 4.8127 lei ($1.08/1.0 euro) per euro on Friday, a drop of 0.12% compared to Thursday's value.
On Friday morning, the leu changed hands at between 4.8122 and 4.8117 per euro, according to real-time interbank forex trading data published by information portal Conso.ro.
On Wednesday, Romania's president Klaus Iohannis said he has tasked interim finance minister Florin Citu with forming a transitional government, after the previous prime minister designate, Ludovic Orban, gave up the mandate. According to the law, Citu must draw up a list of cabinet members and a government programme within 10 days after designation and then send it to parliament for debate.
The leu has been weakening since the beginning of the month, after parliament dismissed the government led by Ludovic Orban in a no-confidence vote requested by opposition left-wing Social Democrat Party (PSD), bringing closer the possibility of early election. Since then, Orban's dismissed cabinet has been carrying on in an interim role.
Fitch Ratings said after the fall of Orban's government that it is unclear whether possible early elections would result in greater clarity on policy steps to address the recent deterioration of fiscal and external metrics.
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.
(1 euro=4.8127 lei)