“The leu has been reasonable. I mean [a depreciation of] 2% to 3% or 4% against this type of background is reasonable,” Isarescu said during the presentation of the central bank’s quarterly inflation report.
He said the leu’s decline might have been somewhat influenced by the macroeconomic fundamentals, but insisted the fundamentals have not weakened.
“The exchange rate has come under downward pressure mainly from factors other than the fundamentals, namely external elements, internal tensions, uncertainties, etc.,” Isarescu said.
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 contributed to the currency’s depreciation, which fell to an all-time low of 4.6481 per euro last week.
Monday, the leu recovered almost 1.6% on the day to 4.574 per euro, amid speculations of a covert intervention from the central bank.