“The leu’s exchange rate is close to a balance level and, once the [political] situation returns to normal, it may see a slight improvement,” said Erik de Vrijer, head of the IMF mission to Bucharest.
Speaking in a news conference, de Vrijer said the current scenarios regarding Romania’s macroeconomic development are based on the assumption that the political crisis will be resolved shortly.
If not, the economic outlook may worsen significantly, he added.
The leu became stranded from its peers in the region in late April-early May after the eastern European country witnessed its second government collapse in less than three months.
Further political complications leading to the President’s suspension in parliament and the Constituional Court’s subsequent delay to rule whether a referendum on his impeachment was valid have contributed to the currency’s depreciation, which fell to an all-time low of 4.6481 per euro earlier August.
Tuesday, the leu’s exchange rate strengthened to a five-week high of 4.5186 to the euro, following better-than-expected economic data for the second quarter and supported by repeated interventions from the central bank.