Leu-euro exchange rate at its historical value of 2011
NBR Governor Advisor Adrian Vasilescu claims a depreciation of approximately 2 percent was recorded, but ‘a serious rate would be higher than 3-4 percent’.
Articol de Paul Poteraşi, 13 Iulie 2011, 08:49
The exchange rate posted on Tuesday by the National Bank for one euro is 42 838 lei, the highest in 2011.
The rate is five bani higher than the previous day.
A higher euro rate was posted by the NBR on 31 December 2010 – 42 848 lei/euro.
The posted reference for the Swiss franc exceeded with 1 179 bani the level reached on Monday, of 35 742 lei/franc, when a record had been also reached.
The NBR governor advisor Adrian Vasilescu commented on the depreciation of the leu compared to the European currency upon leaving the NBR headquarters in the Capital.
‘It is about a regional context. Basically, such an alert decrease has been also recorded in Poland and Hungary and we reacted to what is going on in Europe. Today we have recorded the most significant depreciation, of approximately 2 percent, but it only gets serious if it exceeds 3-4 percent’, the NBR Governor Advisor, Adrian Vasilescu, stated.
He also added that ‘this is not something to worry about’, although there are some ‘clouds in the sky’ all over the world.
‘Indeed, there was a change compared to the first part of the day. The leu has depreciated with 5 bani, not 7, as broadcasted by some media channels’, Adrian Vasilescu added.
The evolution of the euro/leu exchange rate in July.
The sharp depreciation of the leu against the dollar and the franc follows the strong corrections that the euro suffered against these two currencies on the international markets, as the NBR indirectly calculates the references based on these quotations.
The worries about the expansion of the crisis of sovereign debts in the strong European economies have led the euro to a new record of minimum against the Swiss franc and against the dollar, the euro was down 0.6 percent when this news was written.
European stock markets open low
The European stock markets opened low on Tuesday, with significant depreciations of the shares in the banking sector, especially in Greece and Italy, because of the worries that the current crisis of state debts could also digest other countries at the outskirts of the Euro zone, broadcasts Reuters.
The European Reference Index FTS Eurofirst 300 fell 1.6 percent in the first trading minutes, after closing in retreat with 1.5 percent on Monday.
The STOXX Europe 600 Index for bank shares fell 3 percent at the beginning of the day.
The bank index in Athens has also depreciated with 6.4 percent and the Italian group UniCredit and Intesa Sanpaolo shares fell by 7 and 5.6 percent.
The finance ministers in the euro zone promised on Monday evening after a reunion in Brussels, that they would help Greece and other countries in need with cheaper credits, longer maturities and a more flexible bailout fund, but they did not announce when these measures will be implemented.
The New York Stock Market has also closed on Monday on a sharp decrease, after the worst session of the last month, because of the political stalemate in the US regarding the state debt and the crisis in the euro zone, which have determined investors to shelter from potential losses.
The Dow Jones Industrial Average Index closed down by 1.2 percent and Standard & Poors (S&P) 500 closed with 1.81 percent while the Nasdaq Market dropped with 2 percent.
Translated by: Manuela Stancu
MA Student, MTTLC, Bucharest University
