Romanian Leu falls to record low amid political turmoil

Romania’s currency, the leu, has continued to weaken against the euro, reaching a new local low as the country faces mounting political instability and ongoing economic challenges.

According to data from the National Bank of Romania, the exchange rate stood at 5.19 lei per euro on May 4, rose to 5.21 on May 5, and reached 5.26 on May 6, marking a new all-time low for the currency, Caliber.Az reports via Romanian media. 

The European Central Bank data indicates that the 5.10 lei-per-euro threshold was first breached on April 29, after which the currency continued a gradual decline. For roughly six months prior, the exchange rate had remained relatively stable between 5.08 and 5.09, while a year earlier it hovered around 5.12 before briefly strengthening.

The depreciation comes as Romania faces broader macroeconomic strain. According to Digi24 estimates, the country currently has one of the highest inflation rates in the European Union and a budget deficit projected at 7.65% in 2025—well above the EU limit of 3%. Although the deficit has shown some improvement in the first quarter, analysts say the overall fiscal outlook remains under pressure.

The currency weakness is also unfolding against the backdrop of political instability. On May 5, Romania was left without a government following a successful no-confidence vote against the cabinet led by Ilie Bolojan. The ruling coalition collapsed amid disputes between the Social Democratic Party and the National Liberal Party, with some factions subsequently moving into opposition.

By Sabina Mammadli