Aurelian Dochia, economic analyst: Financial markets are always the first to react to new events and information. The recent history of elections in Romania has been disturbed and turbulent. Obviously the financial markets are disoriented. Investors always tend to protect themselves. Let's keep a haze of optimism. Let us hope that after two weeks, after the completion of the presidential elections, we can consider these adjustments normal. It is a radical political change, and investors create waves on financial markets. It is important not to last long.
♦ Financial markets are the first to react to new events, including political tensions, and certain corrections of currency quotations and interest have appeared and will appear all the time, inevitable ♦ It is important not to last much such turbulence, as some analysts say ♦ In fact, some increase in the exchange rate was expected by economists, considering the big deficits of Romania, budget and current account.
The intensification of the tensions on the political scene – after the surprising result in the first round of the presidential elections, the resignation of Prime Minister Marcel Ciolacu and the exit of the PSD from the government -, raised yesterday on the financial, foreign and monetary markets.
The pressures were emphasized, the currency sales increased, and the capital outputs in Romania intensified. Under these conditions, the exchange rate exceeded for the first time the threshold of 5 lei/euro, after an increase by 1.2% compared to the quotation of Monday, and on the interbank market ROBOR at 3 months, a reference for variable interest loans, has passed 6%. If until now there were problems related to the big budget deficit of Romania, which must be adjusted, and the significant current account deficit, in an economy that brakes strongly, now the concern has accentuated due to the political instability. Financial markets are the first to react to new events, and certain corrections of currency and interest quotations have appeared and will always appear. However, it is important not to last much such turbulence, as some analysts say. In fact, some increase in the exchange rate was expected by economists, considering the big deficits of Romania. «Financial markets are always the first ones to react to new events and information. The recent history of elections in Romania has been disturbed and turbulent. Obviously the financial markets are disoriented. Investors always tend to protect themselves. To keep a haze of optimism. Waves on financial markets. Now we are in front of the presidential elections, tour 2, with 2 candidates, with 2 suitors for the position of president of Romania, respectively George Simion and Nicuşor Dan.
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