Romanian leu weakens further against Euro, surpassing the 5-to-1 exchange rate threshold amid ongoing political chaos following the election.
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The National Bank of Romania (BNR) made an announcement on May 6, setting the exchange rate at RON 5.0378 for every EUR. This marks a 1.21% increase from the previous RON 4.9775 for every EUR and the first time the Leu exceeded the RON 5 threshold, setting a new historical high.
The Romanian Leu (RON) has been on a downward spiral against the Euro (EUR) in May 2025. As of mid-May, the exchange rate hovers around RON 5.10 per Euro, indicative of the Leu's continued weakening. Specifically, the rate was 5.1030 RON/EUR on May 13, and around 5.1181 RON/EUR on May 9. The once unthinkable RON 5/EUR barrier was breached for the first time early in May, marking the Leu's weakest point against the Euro [4].
Before this historical high, the exchange rate stayed below RON 5 per Euro, averaging around RON 4.97 per Euro in the preceding year. In terms of the Euro to RON rate, the highest conversion rate of 1 RON = 0.2012 EUR was seen on May 1, and a low of 0.1953 EUR was observed around May 7, indicating currency volatility within the month but overall depreciation of the RON against the EUR in 2025 by approximately 2.52% [3].
This depreciation is attributed to the political instability in Romania, as evidenced by the resignation of the Prime Minister and coalition changes [4].
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The depreciation of the Romanian Leu against the Euro, as reported in May 2025, is causing ripples in the banking-and-insurance industry, with finance experts expressing concerns about the potential implications for consumers and businesses. The National Bank of Romania's increase in the exchange rate, setting a new high at RON 5.0378 for every EUR, could further strain the already struggling industry.
