The impact of the political crisis is already visible on the stock market, which has fallen by over 2%, but also on the yields of 10-year government bonds, which have risen by 50 basis points, states the president of CFA Romania, Adrian Codirlașu.
„If we look at what's happening on the financial markets, we will see that at the opening, the Stock Exchange dropped by over 2% (at 12:30 PM - editor's note), and the yields on 10-year government bonds have increased in the last period by about 50 basis points. The developments are just beginning and news that could further move prices may still emerge. Investors are seeing turbulence and have likely reduced some of their positions. For now, the impact on the market is moderate, but it is negative,” Adrian Codirlașu explained to Agerpres.
He mentioned that, in the long term, we should pay attention to the evolution of 10-year government bond yields because they reflect the expectations of both Romanian and foreign investors, and the main problem of the Romanian economy is the budget deficit, which will have to be financed.
„Once again, very important. We depend extremely heavily on European money. This is also what rating agencies say, that it is essential for financing our imbalances and thus maintaining us in the investment grade rating category. The ability to access European money is essential for us to be able to finance our twin deficits, both in unsustainable territory, and to avoid entering a financial crisis,” Adrian Codirlașu also said.
Also, the president of CFA Romania specified that another important indicator, the exchange rate, is stable at the moment.