“The notoriously turbulent Romanian politics tend to be ignored as a background noise, but this time, the power grab by the ruling USL (the Socialist-Liberal Alliance) is serious enough to provide for a more lasting weakness of the EUR/RON pair,” the report noted.
ING estimates political turmoil will push the leu to 4.55 per euro sooner than expected.
“Our mid-term 4.55/EUR expectation is becoming reality rather fast,” the report said.
The leu fell to a fresh historic low of 4.4796 per euro Thursday, after USL filed a request in parliament to have President Traian Basescu suspended, days after the lawmakers ousted the democrat-liberal presidents of both parliament chambers.
Should the parliament endorse USL’s request for impeachment, the Romanians will be asked at a public referendum whether they want a new president or not.