Romanian leu slides as political deadlock threatens FX bond issuance

Sources cited by Economica.net estimate that a designated government must be in place by October 16-17 for Romania to sell foreign-exchange bonds by November 7. The ongoing political impasse has already seen the leu slip past the 5.35 RON per euro threshold after a third failed coalition attempt on September 30. CFA Romania’s 2027 outlook projects the leu reaching 5.4-5.5 RON per euro, with a modest annual depreciation of 2-3 percent, though real-term appreciation persists.

Market participants argue that a 5.5 RON level is within reach, especially as ING Bank observes the national bank’s growing tolerance for a more flexible exchange rate, which could further weaken the leu. Consequently, Romania may look beyond US markets for financing, targeting Europe and possibly Asian investors such as Japan.