Romania's Currency Depreciation Drives Inflation and Spending Cuts
What happened
A survey found that 32% of Romanians report a declining quality of life over the last year, while over 86% expect prices to rise in the next six months. The national currency has depreciated significantly against the Euro, reaching an all-time low.
From rri.ro
Why it matters
The significant depreciation of the national currency against the Euro is causing economic mistrust and forcing citizens to adapt their spending habits. More than half of survey participants plan to spend less over the next six months than they do currently.
From rri.ro
Who's involved
- Florin JianuRomanian manager who discussed SME challenges adapting to economic hardship
- RomaniaCountry experiencing significant currency depreciation and declining quality of life
- euroCurrency against which the national currency has reached an all-time low
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- RomaniaSpeculative
Consumers might face increased costs for necessities due to the national currency's depreciation against the Euro.
- minister for the business environment, trade and SMBsSpeculative
The minister for the business environment, trade and SMBs may face increased pressure regarding SME slowdown and unemployment rates.
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The entities involved
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Florin Jianu
Romanian manager
Nothing else this week.
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euro
currency of most countries in the European Union