It's just a matter of time before euro is worth 4 lei, say analysts
A 4-lei euro, a level that seemed unimaginable as early as at the beginning of this year, when one euro was still close to the 4.3-lei mark, is already considered by all analysts after the euro depreciation against the leu sped up this week.
The appreciation of the Romanian currency in the last two months, which was potentially influenced by the NBR in the beginning, has sparked the interest of foreign investors, who want to benefit from the leu's rally. Citi and UniCredit analysts yesterday modified their targets, recommending to investors who had in the past sold euros against lei to wait for a 4 lei/euro exchange rate before they take profit.
"The euro/leu exchange rate can fall to 4.03 level from 4.1 now but, but we do not think it will break those levels sustainably as Central Bank will wish to discourage overly fast currency appreciation," says Wike Groenenberg, analyst with Citi London.