The Romanian currency has once again become interesting for the world's financial centers, which have returned with bets on an appreciation towards 4 lei per euro, after having forgotten about the Romanian market for a while.
This time their optimism has to do with prospects of the BNR (Romanian National Bank) favoring a future leu strengthening, which would help in fight against the increasingly costly inflation. In addition, yields of Romanian T-bills, especially short-term ones, seem attractive, amid an improvement in the general economic outlook.
BNP Paribas and JP Morgan traders privately recommend to clients to bet on the leu, expecting an exchange rate of RON 4 per one euro.
Analysts of Barclays Capital, the investment division of one of the biggest banks internationally, and those of Citi, see prospects of a slight leu strengthening, recommending a bet on the Romanian currency in their reports.
Ilker Domac, analyst within Citi in charge of emerging markets in the region, expects the euro to reach close to RON 4 on the back of the economic growth recorded in the first quarter, coupled with the continuous improvement of external performance and a lack of obvious evaluation problems.
Romania's economy expanded by 0.6% in the first quarter, in line with the expectations of the market. This was the second quarterly growth in a row, which translates into a technical exit from recession for the country
The Romanian currency has once again become interesting for the world's financial centers, which have returned with bets on an appreciation towards 4 lei per euro, after having forgotten about the Romanian market for a while.
This time their optimism has to do with prospects of the BNR (Romanian National Bank) favoring a future leu strengthening, which would help in fight against the increasingly costly inflation. In addit
