BNR: Risks to RON exchange rate remain high

The Romanian leu faces significant exchange rate risks due to geopolitical tensions, large deficits, and domestic political uncertainties, as noted in the BNR's recent meeting minutes. The Council emphasized the need for political stability and fiscal consolidation to attract European funds, crucial for the economy's external position. Recent trends showed a rise in the leu/euro exchange rate, influenced by global market volatility and domestic factors. The NBR highlighted ongoing uncertainties regarding future budget deficit reduction measures, which are essential for maintaining fiscal sustainability. On Tuesday, the leu depreciated slightly against the euro, reflecting these challenges.