Romanian Currency – World’s Biggest Advancer Against EUR, USD

Rol_vs_Eur.pngAmong nine traders, strategists and investors polled on Romania’s leu by Bloomberg, six advised buying the currency against the euro and three advised to hold it. None said sell. According to Bloomberg analysis Romanian leu is the currency with the fastest growing trend against Euro, while according with the last six months data Romanian leu is placing third worldwide, after the Polish Zlot and Brazilian Real as attractivity for foreign investors.

All these are happening more likely because the Romanian central bank will lift foreign exchange restrictions for Romanian companies to help them protect themselves against losses from steep swings in the leu against the euro and the dollar. The bank’s administration board will on Feb. 24 formally approve a decision to allow companies unrestricted access to buy foreign currency, Bloomberg.com reports.

Demand for Romania’s currency is increasing also on speculation plans to allow foreign investors to open deposits in the country will spur an inflow of funds. Romanian central bank Governor Mugur Isarescu said on Feb. 17 the government will allow foreigners to make deposits in lei, a step required for joining the European Union, by the end of June.

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