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Post by radovic on Nov 22, 2007 10:55:04 GMT -5
Romania Currency Weakens 22 11 2007 Bucharest_ The Romanian leu fell to around 3.60 lei to the Euro on Thursday, its lowest level in almost 18 months.
The Governor of the Central Bank, Mugur Isarescu, has told journalists that the current account deficit poses the greatest danger to the economy and that there is room for the leu to weaken further.
"An optimal mix in the short term would be tight fiscal and income policies together with a moderately restrictive monetary policy so as not to generate a new round of national currency appreciation," Isarescu said.
Analysts expect the leu to depreciate further, as its weakness boosts exports and reduces imports.
In early October, the Romanian government approved the 2008 state budget, which envisages total revenue of 172.8 billion lei (€49.3 billion), while expenditure will stay at 184.7 billion lei.
Romania is projected to have a budget deficit of 2.7 per cent of GDP.
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Post by superman on Nov 22, 2007 12:36:37 GMT -5
that's bad for us, but also bad for you also, our neighbours.
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