ONE EURO - ALMOST 4.6 LEI Political stupidity killing the leu

The National Bank of Romania yesterday announced a reference exchange rate of 4.5957 lei/Euro, the lowest level since August 3rd, 2012, when it stood at 4.6481 lei for an Euro, as, since the beginning of the crisis within the PSD, the national currency entered a downward trend.

The tense political situation in Romania and the vote of no-confidence against the Grindeanu government brought by the PSD-ALDE alliance is affecting the currency, according to analysts, with investors concerned that the current political situation will lead to unpredictability and to the postponement of some reforms that are essential to the business sector.

The decision of Liviu Dragnea to negotiate with the UDMR for the motion of no-confidence against the government has turned against him all the members of the PSD, especially those in Transylvania.

Last night PSD parliamentarians and leaders in the territory met to discuss the current political situation, as well as the attitude of Liviu Dragnea as president of the PSD. Political sources told us that the PSD members were unhappy with the manner in which Liviu Dragnea has handled this crisis, as the alternative of his dismissal has also been discussed.

Former PM Victor Ponta wrote on Facebook last night: "Liviu Dragnea, scared that he doesn't have the votes of his colleagues to get the vote of PSD vote of no-confidence against the PSD through, has decided to use the votes of the UDMR as a «silver bullet»! Today (ed. note) he has fired that «silver bullet» in his own foot! And in those of the PSD!"

Furthermore, Victor Ponta yesterday announced that the vote of no-confidence wouldn't pass, saying that he had talked to 246 MPs from the PSD and ALDE and that more than 13 of them would not support that motion.

The press claims that in both Chambers of the parliament, the PSD has 221 members of the parliament, and ALDE has 26 MPS, in total 247 who are part of the governing coalition. It follows here that Victor Ponta has spoken to all the PSD-ALDE members, including Liviu Dragnea.

The leu has fallen to its all-time low in 2012, also amid major political tensions in Romania, during the suspension of the president in office at the time, by the USL majority in the Parliament.