The rise of the US dollar could lead to an increase in fuel bills, but also higher public debt repayment costs and an increase in the public debt to the Gross Domestic Product, according to economists consulted by Agerpres.

“We draw attention to the intensification of the trade deficit with non-EU countries, by 75.9% year/year to 0.9 billion euros in June, respectively by 74.1% year/year to 5.35 billion euros in the first semester of 2022. On the other hand, oil imports are denominated in dollars, and the appreciation of the dollar could cause an increase in fuel bills in the next period,” says Andrei Rădulescu, Director of Macroeconomic Analysis at Banca Transilvania.

“Possible effects of a stronger dollar, caeteris paribus, on the Romanian economy: higher costs for imports of raw materials quoted on the international markets in dollars, therefore a higher imported inflation; the deepening of the trade deficit and the current account deficit, which would could put additional depreciation pressures on the national currency, in general, a stronger dollar puts devaluation pressures on the currencies of emerging countries; higher public debt repayment costs and the increase in public debt (which also includes dollar loans) relative to the Domestic Product Gross (expressed in lei),” added Ciprian Dascălu, chief economist of BCR.

The American dollar is more expensive in relation to the leu compared to the European currency, given that the exchange rate displayed by the central bank on Tuesday indicated 4.9225 lei for one dollar, compared to 4.8851 lei for one euro.