The Romanian leu fell to a record low against the euro on Thursday as concerns grew over the stability of Ilie Bolojan’s minority government, which faces a no-confidence vote on May 5.
The National Bank set the rate at 5.14 to one euro, down from 5.10 on Thursday.
The currency’s decline reflects investor uncertainty about Romania’s political situation and the potential for the parliamentary vote to upend the current administration’s ability to govern.
Analysts fear the political crisis might put an end to reforms needed to rein spending and retaining the country’s investment grade rating.
Bolojan’s government, which now lacks a parliamentary majority, needs to secure enough votes for Tuesday’s vote. The outcome could determine the direction of Romania’s medium-term economic and fiscal policies and strategic direction
The current political crisis is an obstacle for economic stability with the instability unnerving investor confidence.
Romania’s political crisis: the president has backed himself into a corner
