Romania faces currency volatility and reserve declines amid political unrest

Romania is experiencing significant economic and political volatility. The national currency, the leu, faced intense pressure on the interbank market, with the euro briefly exceeding a record 5.34 lei. This depreciation follows the rejection of the Mureșan government by Parliament, contributing to market uncertainty.

Simultaneously, the National Bank of Romania (BNR) reported a substantial decrease in foreign exchange reserves, which fell by approximately 4.86 billion euros in September, ending the month at 60.06 billion euros. The BNR is attempting to balance exchange rate volatility with interest rate stability.

On the equity market, the Bucharest Stock Exchange (BVB) showed growth, with the BET index rising 2.18% at the start of the quarter, driven largely by the energy sector. This follows a strong first half of 2026 where market capitalization increased by nearly 28%.

Financial indicators for consumers also show shifts: the IRCC index rose slightly to 5.57%, while the ROBOR index has seen fluctuations, impacting variable-rate loans. Additionally, analysts warn of potential future increases in gas prices for consumers once price caps expire in 2027.