FinMin Stefan: two or three external influences have led to an increase of the euro against the leu
Minister of Public Finances, Viorel Stefan declared on Thursday in Galati, in a press conference, that two or three external influences but also some domestic elements have led to an increase of the euro against the leu.
He specified that the factors that have influenced the evolution of the euro and implicitly the depreciation of the leu are Trump's administration policy, the European Union prospects, Brexit, comments about the stability of the country, but also the policy of the National Bank.
"There are two or three outside influences that are visible, the financial media know them, they are expecting them, that's not new. So the Trump administration's expansionist policy, the new policy of the US Treasury of increasing interest to the dollar generates an impact on the evolution of the euro and everything that is tied to the euro, including the leu and all the currencies around it. On the other hand, we are dealing with an inflation process that we grasp at the level of the European Union and the odd thing is that the leu is having a lower inflation than the euro, but the latter cannot last for long and then it will influence the leu too. The discussions about the EU perspective, about Brexit, also complete the picture of external factors to which are added the developments in the domestic economy, the comments related to the political, economic, budgetary stability, they could represent a cause. But on the other hand, I think that it is a test that speculators carry out on the real estate market or even the National Bank is trying to test the limits of affordability and devaluation will be corrected in a very short time. If we look back, in January there was also a period of about three days when the leu was very volatile, but recovered. The fact is that the Romanian economy is an interesting destination for financial investors, each issue of bonds of the Romanian state is oversubscribed, yields are competitive, so there is no reason for concern. These developments are normal in an economy characterized by risk," stated Minister Stefan Viorel.