Swiss franc hits a new record

The National Bank of Romania (NBR) traded the leu at 0.25558 against the Swiss franc on Friday, a new record after the Swiss franc jumped to a high of 38 269 against the leu on Tuesday, a double exchange rate compared to July 2007.

This record exchange rate of the Swiss franc is the result of the increased aversion to risk of the players, whose concerns are related to the brake in the U.S. economic growth and to the state debt crisis in Europe, which have led to people and seeking refuge in safe investment, such as the Swiss franc.

Since the beginning of the years the leu-franc exchange reference rate has increased by 14.2 percent, from 34 242 units to 39 130.

The leu depreciated against the dollar and NBR traded the leu with 0.33327 against the U.S dollar from 0.33651 on Thursday.

Depreciation of national currency is in line with regional developments.

On Friday the gold price reached RON 1 604 650, with RON 15 057 more than it was established in the previous meeting, namely RON 1 589 593.

"Many currency loans were refinanced in euro or can be refinanced if banks and their customers reach a decision”, said recently NBR Vice Governor Cristian Popa.

U.S. and Asian stock markets fell on Thursday with up to 5 percent due to the investors’ fear about the collapse of the U.S. economy, about extending the state debt crisis in the euro area, namely in Italy and Spain and the attempts of the Japan and Swiss central banks to moderate the appreciation of the yen and the Swiss franc.

Translated by: Denisse-Meda Bucura

MA Student, MTTLC, Bucharest University