Nicolae Vacaroiu, interim President of Romania and former Prime Minister from 1992 through 1996, has commented, shortly after taking over his new position, that the RON risks a correction due to fast-paced current account deficit growth. He said he would invite NBR Governor Mugur Isarescu to the Cotroceni Palace (presidential HQ), to discuss taking steps to contain the macroeconomic parameters and also expressed concern over the deterioration of the balance of foreign payments.

Foreign investors were quick to react to the statements made by the interim president who is still a PSD (Social Democrat Party) member, regarding the dangers of a depreciation of the RON under pressure from the foreign deficit. On Friday evening non-resident players bought euros at rates of more than 3.34 from offshore markets. Before the statements in question, the local market had closed at rates of 3.355/3.3385 RON/EUR, 30 bani (100 bani equal 1 RON) over the level of the first hours of trading. The euro had increased to more than 3.34 RON in Bucharest during the trading session on Thursday, after the announcement by Parliament of the suspension of President Traian Basescu.

"This is not a normal statement from a president," says Ionut Dumitru, head of Raiffeisen Bank's research department. Comments on the trend of the exchange rate usually come from the monetary authority, but positions are expressed with more discretion. It remains to be seen whether the move to close the RON positions that begin on Friday night would continue through this week.

Dumitru believes the risk of adjustments of ratings assigned to Romania still persists, particularly if we see the political conflict taking to the streets.

Analysts believe that the RON can only experience corrections in the short-term, while its appreciation outlook will be maintained in the long term, given the convergen