The Influence of Foreign Direct Investments and the Current Account of the Balance of Payments on the Evolution of the Lei/Euro Exchange Rate in Romania

摘要

The purpose of this research is to demonstrate the influence of the current account of the balance of payments and of the foreign direct investments on the evolution of the lei/euro exchange in Romania. Hence, an econometric model is proposed and validated using multiple linear regressions with two independent variables: FDI and the current account of the balance of payments for the period between 2007 and 2013. The results showed that an increase of the FDI flow as well as an increase of the current account of the balance of payments contributes on long term in the increase of the leu/euro exchange.