Romania’s leu surpassed all European currencies and became the world’s best performer this year, according to Bloomberg market analysts.
Prospects continue to be high because foreign investment may double after Romania joins the EU.
In 2006, following the purchase of 60% of the Romanian Commercial Bank by Austria’s Erste Bank, the leu rose 20% against the dollar, passing a six year high.
“There are several factors that increased the leu, starting with the seven-years of continuous economic growth and seven-years of continuous disinflation.
Romania expects a record 8 billion euros in foreign capital this year, a significant rise from 5.2 billion euros in 2005.
The government projects foreign investment will rise by 10 billion euros in 2007.
One of the most important foreign investors, Renault, France’s second largest carmaker, has announced it will pump in 100m euros to raise production at its assembly plant to 350,000 vehicles a year in 2008.