Headlines
Romania election win for Dan reduces political risk ahead, says JPMorgan
Published by Global Banking & Finance Review®
Posted on May 19, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 19, 2025
1 min readLast updated: January 23, 2026
JPMorgan views Nicusor Dan's election win as reducing Romania's political risk, easing downgrade concerns, and forecasts moderate currency devaluation.
LONDON (Reuters) - JPMorgan said on Monday that an election win by Romania's centrist Bucharest mayor Nicusor Dan is reducing political risk ahead and that a sovereign ratings downgrade to below investment grade was now less of a concern.
The Wall Street bank adjusted its forecasts following Sunday's runoff election, saying it now expected a "moderate devaluation" for the country's currency. It predicts the leu at 5.10 versus the euro by the end of the second quarter and at 5.25 by year-end, according to a note.
JPMorgan also moved its exposure on Romania's international bonds to "marketweight" from "underweight" and to "overweight" from "marketweight" on local government bonds.
"The process to form a majority remains tricky," Nicolaie Alexandru-Chidesciuc at JPMorgan said. "In a best-case scenario, a government might be in place by mid-June and a fiscal package might be, in a best-case scenario, approved by end-June."
Dan won the country's presidential election in a shock upset over a hard-right, nationalist rival who had pledged to put Romania on a path inspired by U.S. President Donald Trump's politics.
(Reporting by Karin Strohecker; Editing by Dhara Ranasinghe)
The article discusses the impact of Nicusor Dan's election win in Romania on political risk and economic forecasts.
How does JPMorgan view the election outcome? JPMorgan sees it as reducing political risk and easing concerns about a ratings downgrade.
What are the currency forecasts? JPMorgan predicts a moderate devaluation of Romania's leu against the euro.
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