LAST HOUR Message from the outside for investors in Romania: Get out of Romanian government bonds, position yourself for the depreciation of the leu!

Romania's macroeconomic situation has deteriorated so much that the stability of the exchange rate is increasingly difficult to maintain, reports BCA Research, which is counting on further depreciation of the leu and recommends investors to sell Romanian bonds.

“Large budget and current account deficits, high inflation, negative real rates, an overvalued exchange rate and deteriorating economic growth point to an incipient currency devaluation,” analyst Armen Hamazaspyan wrote in a research note, cited by Bloomberg.

BCA Research is a Canadian investor research services firm. BCA recommends that investors position themselves for the depreciation of the leu and exit Romanian local bonds.

More details on Profit.ro.