The Romanian Leu (RON) has significantly depreciated against the Euro (EUR) in 2025, indicating a weakening of the currency and possibly deeper economic problems along with rising inflation.
Development of the RON/EUR Exchange Rate in 2025
- The average exchange rate in 2025 is around 0.2004 to 0.2009 Euros per Leu.
- The highest exchange rate was recorded on May 1 at approximately 0.2012 EUR/RON.
- The lowest exchange rate dropped on May 7 to about 0.1953 EUR/RON.
- Overall, the value of the Leu against the Euro decreased by about -2.5% to -2.9% in the year-to-date.
Significance and Causes
This depreciation signals the end of a phase of artificial stability of the Romanian currency against the Euro. The central bank seems powerless against the depreciation pressures, which is often an indicator of underlying economic challenges:
- There may be inflation issues in Romania or other macroeconomic imbalances.
- The depreciation can increase import costs, further driving inflation.
- For investors from German-speaking countries, this means increased exchange rate risk when investing or doing business with Romania.
Effects for Investors
Investors should review their portfolios concerning currency risks in light of these developments:
- A weaker Leu can lead to losses in investments denominated in Romanian currency.
- Hedging strategies against exchange rate fluctuations could be advisable.
In summary, the current development of the RON/EUR exchange rate demonstrates a clear weakness of the Romanian Leu and the possible end of a phase of stable currency relations to the Euro – a signal of deeper economic problems and increased risks for international investors.