Romanians may no longer be able to conclude insurances in European currency

17 June 2020 — Andrei Victor
Romanians will no longer be able to conclude insurance contracts in EUR, according to a bill adopted by Romanian Senate and debated these days in Chamber of Deputies, informed the Romanian insurance portal here. According to the quoted source, among the most common insurance contracts concluded in European currency are the life, MoD and HH policies.

The draft Law on the consolidation of the national currency as the single payment currency on the Romanian territory recently received an opinion from the Commission for Budget, Finance and Banking and from the Commission for Legal, Discipline and Immunities. Thus, according to the legislative proposal, the supply and service contracts must relate exclusively to prices and payments in RON.

The initiators of the law invoke certain practices where the payments in RON are consolidated in EUR, at a exchange rate that usually exceeds the official rate published by the Central Bank: "Basically, the euro is transformed, contrary to the Romanian Constitution, the Central Bank State and The Foreign Exchange Regulation, in the de facto currency of Romania, with the consequence of the loss in insemination proportions of the trust in the national currency and of the unjust, unmotivated reduction of its purchasing power".

More than that, according to the draft law, another consequence is related to the "complete transfer to the consumetr of the risk associated with the exchange rate and with the gradual loss of the purchasing power in RON".

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