Euro Panic Buy As Romanian Leu Sinks To Record Low

Panic-driven Romanians waited in line to buy euros Monday, after the leu fell to an all-time low against the European common currency, amid fears that the country’s EUR13 billion loan agreement with the International Monetary Fund could come to a halt.

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"The demand for euros was at least five times higher compared with a regular day," Andrei Sterescu, manager of Luxor exchange house told MEDIAFAX. "The sales were booming," he added.

Romania's leu fell to a record low at 4.375/4.378 units versus the euro amid fears of inflationary pressures, after the government said will hike the sales tax to 24% from 19% to offset the annulment in court of a 15% cut in pensions and keep its loan agreement with the IMF on track.

The central bank's reference rate also fell to an all-time low at 4.3257 lei to the euro Monday, over one percent weaker than 4.28 lei per euro Friday.

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