JPMORGAN: Nicuşor Dan's victory in elections reduces the political risk / bank is waiting for a “moderate” devaluation of the lion

The JPMorgan bank said on Monday that the victory in elections of the centrist mayor of Bucharest, Nicuşor Dan, reduces the political risk in the future, and a decrease in the sovereign rating below the level of investments is now less worrying, reports Reuters, quoted by News.ro.

The bank on Wall Street has adjusted its forecasts after the second round of Sunday elections, saying that it is now waiting for a “moderate devaluation” of the national currency. According to a note, the bank stipulates that the lion will be listed at 5.10 compared to the euro until the end of the second quarter and at 5.25 until the end of the year.

JPMorgan also changed its exposure to the international bonds of Romania from “underweight” to “market weight” and from “market weight” to “overweight” on the obligations of local administrations.

“The process of forming a majority remains difficult,” said Nicolaie Alexandru-Closesciuc from JPMorgan. “In the best scenario, a government could be formed until mid -June, and a fiscal package could be approved, also in the best scenario, until the end of June,” he explained.

Nicuşor Dan won the presidential election in the country in a surprising victory over the far-right, nationalist rival, who had promised to put Romania on a trajectory inspired by the policy of US President Donald Trump, says Reuters.