December 29 (SeeNews) - The Romanian leu weakened to an all-time low against the euro on Friday amid unrest caused by protests against government plans to introduce controversial changes to the judicial system.
The central bank, BNR, set its reference exchange rate at 4.6597 lei per euro on Friday, 0.19% weaker than 4.6507 lei per euro on Thursday.
On Friday morning, the leu changed hands between 4.6529 and 4.6628 per euro, according to real-time interbank forex trading data published by information portal Conso.ro.
ING Bank analysts noted in Friday morning that the Romanian currency was again decoupled from peers which strengthened versus the single currency.
"Today, we look for 4.6500-4.6700 provided the buying interest persists. With an all-time high for the widely followed (by domestic media and public) BNR fixing at 4.6551, we could see official offers to the topside limiting the move," ING Bank said in a daily comment on the financial markets.
On Tuesday, CFA Romania, an association of investment professionals, said they expect an exchange rate of 4.6891 lei per euro in the next six months and 4.7329 lei per euro in 2018.
In 2017, the leu on numerous occasions hit record lows amid unrest caused by controversial decisions of the Social Democrat-led government coalition.
Romanians have been protesting for seven Sundays in a row against planned changes to the Criminal Code that they see as an attempt to weaken the fight against corruption. People protest against government's plans to appoint Romania's chief prosecutor without the consent of the president.
A week ago seven EU member states called on the government to refrain from any action resulting in weakening of the independence of the judiciary and of the fight against corruption.
This is not the first warning for Romania since the beginning of protests, on November 5.
The Foreign Investors Council (FIC) said that the country's political agenda could lead to weakening of the rule of law and undermine the regulatory framework necessary for a modern economy. The member companies of FIC generate around 25% of Romania’s GDP.
At the end of November, the U.S. State Department urged Romania's parliament to reject legislation that could weaken the anti-graft effort. "The United States notes with concern that the Parliament of Romania is considering legislation that could undermine the fight against corruption and weaken judicial independence in Romania," State Department spokeswoman Heather Nauert said at the time.
Romania received similar warnings from EU bodies, the U.S. and investors in February, when the Social Democrat-led government coalition's plans to include some corruption offences in a draft bill on prison pardons sparked the biggest nationwide protests since the fall of Communism. An estimated record 500,000 people gathered at the time in Bucharest and other Romanian cities seeking the government's resignation.
(1 euro=4.6597 lei)
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