The leu’s all-year depreciation of 0.5 percent is a relatively good performance compared to the Polish zloty and the Hungarian forint, which lost about 4 percent and 8 percent, respectively, in 2014, according to a report by ING Bank Romania.

‘The leu closed 2014 at 4.4860 per euro, having gained 0.1 percent in the last trading session, but saw a depreciation of 0.5 percent over the entire year. It’s a relatively good performance (the zloty and the forint lost around 4 pct and 8 pct, respectively, in 2014), but it appears that the leu has also had the central bank’s support (especially at the beginning of the year, possibly at the end too, but we are expecting today the data on the forex reserves in December). The local market has been on holiday on Friday too and the leu decreased to less than 4.51 per euro, but then bounced back to 4.4970 lei per euro at the reopening of Romanian markets today. As no immediate impact was visible today on the leu, against the aggressive movements of the EUR / USD pair, we tend to believe that any depreciation below 4.50 lei per euro should be limited,’ reads the bank’s report.

This year’s budget is devised for an average exchange rate of 4.42 lei per euro. (source: nineoclock.ro)