Skip to content
Markets

Romanian Leu at Record Low as Central Banker Sees FX-Loan Risk

  • Currency gradually sinks to record low against euro this week
  • Weaker leu may ward off more corporate foreign-currency loans
A customer hands over a leu banknote at a market in Bucharest.

A customer hands over a leu banknote at a market in Bucharest.

Photographer: Andrei Pungovschi/Bloomberg
By

and

Updated on

Romania’s currency weakened to a record low after the central bank signaled it will allow the leu more flexibility, a move a policy maker said is likely to curb a recent jump in foreign-currency loans.

The leu weakened for a fifth straight day, the longest slump since March, and touched an all-time low of 4.9816 against the euro on Friday before narrowing losses. It’s been on the back-foot since the central bank a week ago gave the closely-managed currency more flexibility and indicated the trading range may shift.