Euro could go over RON 6-thresholdPublish date: 28-06-2010
National Bank of Romania (BNR) experts claim that, unless the Government promptly cuts down on expenditures, it will be unable to check inflation, and the exchange rate could soar to RON 6-7 per Euro, Realitatea.net informs.
On the other hand, the advisor to the BNR governor, Adrian Vasilescu, gives assurances that there is no risk of an unbalance on the currency market, for the time being.
"BNR may intervene on the market at any point. There is no impossibility of an efficient intervention. The problem lies in possibility and opportunity. (…) There is no risk of an unbalance on the currency market. As far as the Central Bank reserve is concerned, that is considerable and it was amassed with effort," Vasilescu said. Romanians' living standards depend on the evolution of the national currency. The devaluation of the RON, by the day, takes its toll, especially on those who have to pay bank instalments, wages or bills in EUR. In the case of a loan in EUR, for a EUR 300-instalment, one would have to pay, today, when the exchange rate rose to RON 4.28, approximately RON 1,250 to the bank. If the euro rises to RON 6, the instalment would rise by RON 550.
Lodgers would pay higher rents
Those who live in rented homes also have cause for concern. At an average rent of EUR 200, the lodger would have to pay an extra RON 300. The only Romanians on the winning side are those who negotiated their wages in euros. For instance, individuals who are paid EUR 500 will receive, at an exchange rate of RON 6 per Euro, RON 860 more.
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