Friday, January 9, 2009

Romanian currency drops to record low against euro

BUCHAREST, Romania (AP) — Romania's national currency dropped to a record low against the euro on Friday, the central bank said.

The National Bank of Romania said that the leu has lost more than 17.5 percent against the European national currency in the past year. It dropped to a rate of 4.21 lei to one euro on Friday compared to 3.59 lei a year ago.

Romania's economy is heavily dependent on imports from the European Union, which it joined in 2007. Production has dropped sharply in the past two decades since communism ended in 1989.

The economy has grown about 8 percent annually in the past three years fueled by a strong leu and booming real estate business.

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