TheRomanian leu(Romanian pronunciation:[lew],plurallei[lej];ISO code:RON; numeric code: 946) is the currency ofRomania.It is subdivided into 100bani(Romanian pronunciation:[banʲ],singular:ban[ban]), a word that means both "money" and "coin" in theRomanian language.
| Leu românesc(Romanian) | |||||
|---|---|---|---|---|---|
| |||||
| ISO 4217 | |||||
| Code | RON (numeric:946) earlier: ROK, ROL | ||||
| Subunit | 0.01 | ||||
| Unit | |||||
| Plural | lei | ||||
| Denominations | |||||
| Subunit | |||||
| 1⁄100 | ban | ||||
| Plural | |||||
| ban | bani | ||||
| Banknotes | |||||
| Freq. used | 1 leu,5 lei,10 lei,50 lei,100 lei,200 lei | ||||
| Rarely used | 20 lei,500 lei | ||||
| Coins | |||||
| Freq. used | 10,50 bani | ||||
| Rarely used | 1 ban,5 bani | ||||
| Demographics | |||||
| User(s) |  Romania | ||||
| Issuance | |||||
| Central bank | National Bank of Romania | ||||
| Website | www | ||||
| Printer | National Bank of Romania | ||||
| Website | www | ||||
| Mint | Monetăria Statului | ||||
| Website | www | ||||
| Valuation | |||||
| Inflation | Current value:6.6% (Q1 2024)[1] | ||||
| Source | National Bank of Romania[2] | ||||
Etymology
editThe name of the currency means "lion", and is derived from theDutch thaler(leeuwendaalder"lion thaler/dollar" ).[3][4][5]The Dutchleeuwendaalderwas imitated in several German and Italian cities. These coins circulated in Romania, Moldova and Bulgaria and gave their name to their respective currencies: theRomanian leu,theMoldovan leuand theBulgarian lev.[6]
History
editFirst leu: 1867–1947
edit
In 1860, theDomnitorAlexandru Ioan Cuzaattempted to create a nationalromânul( "the Romanian" ) and theromanat;however, the project was not approved by the Ottoman Empire.[7]
On 22 April 1867, abimetallic currencywas adopted, with the leu equal to 5 grams of 83.5% silver or 0.29032 grams of gold. The first leu coin was minted in Romania in 1870.[7]
Before 1878 the silverRussian rublewas valued so highly as to drive the native coins out of circulation. Consequently, in 1889, Romania unilaterally joined theLatin Monetary Unionand adopted agold standard.Silvercoins were legal tender only up to 50 lei. All taxes and customs dues were to be paid in gold and, owing to the small quantities issued from the Romanian mint, foreign gold coins were current, especially French 20-franc pieces (equal at par to 20 lei),Ottoman lira(22.70 lei), Russian rubles (20.60 lei) and Britishsovereigns(25.22 lei).[citation needed]
Romania left the gold standard in 1914 and the leu's value fell. The exchange rate was pegged at 167.20 lei toUS$1 on 7 February 1929, US$1 = 135.95 lei on 5 November 1936, US$1 = 204.29 lei on 18 May 1940, and US$1 = 187.48 lei on 31 March 1941. During Romania'sWorld War IIalliance withNazi Germany,the leu was pegged to thereichsmarkat a rate of 49.50 lei to RM 1, falling to 59.5 lei = RM 1 in April 1941. DuringSovietoccupation, the exchange rate was 1 ruble to 100 lei. After the war, the value of the currency fell dramatically[8]and the National Bank issued a new leu, which was worth 20,000 old lei.[7]
Second leu (ROS): 1947–1952
editA revaluation ( "Great stabilization",marea stabilizare) took place on 15 August 1947, replacing the old leu at a rate of 20,000 old lei = 1 stabilized leu.[7]No advance warning was given and there were limits for the sums to be converted in the new currency: 5 million old lei for farmers and 3 million old lei for workers and pensioners.[7]
Out of the 48.5 billion old lei in circulation, only around half were changed to stabilized lei.[7]The most affected was themiddleandupperclasses,who were later also affected by thenationalization of 1948.At the time of its introduction, 150 new lei equalled 1 US dollar.[citation needed]
Third leu (ROL): 1952–2005
edit
On 28 January 1952, another new leu was introduced. Unlike the previous revaluation, different rates were employed for different kinds of exchange (cash, bank deposits, debts etc.) and different amounts. These rates ranged from 20 to 400 "old lei" for one "new" leu. Again, no advance warning was given before the reform took place.[citation needed]
Between 1970 and 1989, the official exchange rate was fixed by the government through law. This exchange rate was used by the government to calculate the value of foreign trade, but foreign currency was not available to be bought and sold by private individuals. Owning or attempting to buy or sell foreign currency was a criminal offence, punishable with a prison sentence that could go up to ten years (depending on the amount of foreign currency found under one's possession). International trade was therefore considered as part of another economic circuit than domestic trade, and given greater priority.[citation needed]
This inflexibility and the existence of surplus money due to constant economic decline in the 1980s, mixed with the need for more foreign currency and the refusal of theCeaușescuregime to accept inflation as a phenomenon in order to attain convertibility, led to one of the greatestsupply side crisesin Romanian history, culminating with the introduction of partial food rationing in 1980 and full rationing for all basic foods in 1986/87. This was a major factor in growing discontent with Ceaușescu, and contributed in part to the fall of the Communist regime in 1989.[citation needed]
In the post-communist period, there has been a switch in the material used for banknotes and coins. Banknotes have switched from special paper to special plastic, while coins switched from aluminum to more common coin alloys (probably partly due to technical limitations of coin-operated vending machines). The transition has been gradual for both, but much faster for the banknotes which are currently all made of plastic. There has been a period in which all banknotes were made of plastic and all coins were made of aluminum, a very distinctive combination.[citation needed]
In the 1990s, after the downfall of communism, inflation ran high due to reform failures, the legalization of owning foreign currency in 1990, reaching rates as high as 300% per year in 1993. By September 2003, oneeurowas exchanged for more than 40,000 lei, this being its peak value. Following a number of successful monetary policies in the late 1990s and early 2000s, the situation became gradually more stable, with single-digit inflation in 2005.[citation needed]
The Romanian leu was briefly the world's least valued currency unit,[9]from January (when theTurkish liradropped six zeros) to July 2005. However, the 1,000,000 lei banknote was not the highest Romanian denomination ever; a 5,000,000 lei note had been issued in 1947.[citation needed]
Fourth leu (RON): 2005–present
edit 
| |
| 1,000,000 old lei 168 mm × 78 mm |
100 new lei 147 mm × 82 mm |
| Same design, different sizes. The images are to scale. | |
On 1 July 2005, the leu was revalued at the rate of 10,000 "old" lei (ROL) for one "new" leu (RON), thus psychologically bringing the purchasing power of the leu back in line with those of other major Western currencies. The term chosen for the action was "denominare", similar to the English term "redenomination".The adjustment was a difficult one for shoppers and many ATMs were inoperable and in need of reprogramming. The old ROL currency banknotes remained in circulation until 31 December 2006 (coins remained in circulation only until 31 December 2005), but all accounts were converted starting 1 July 2005. There is no conversion time limit between the currencies. Retailers had to display prices in both old and new currency from 1 March 2005 until 30 June 2006. The appreciation of the leu during 2005 was about 20% against a basket of major currencies.[citation needed]
As of 2006, the revaluation was a potential source of confusion, especially to visitors, since both old and new currency values were commonly quoted. When written, the very large amounts in old currency are usually obvious, but in speaking inhabitants might refer to an amount of 5 new lei as simply "fifty" in reference to its value of 50,000 old lei. As of 2020, it is still common to call 100 lei "un milion" or one million and 500 lei "cinci milioane" or five million.[citation needed]
Speculation about joining the Eurozone
editIn 2014, Romania's Convergence Report set a target date of 1 January 2019 for euro adoption. In April 2014, Romania had met four out of the seven criteria for accession to the Eurozone.[10]In recent years, however, Romania had made step backs regarding the adopting of the euro; the 2020 Convergence Report concluded that Romania does not meet any of the four economic criteria necessary for this process.[11]In February 2021, then-Prime MinisterFlorin Cîțustated that Romania could join the Eurozone in 2027 or 2028,[12]although Romanian economistFlorin Georgescuannounced in December 2021 that this date had been delayed to 2029.[13]
Coins
editThe size and composition of coins changed frequently after the introduction of the currency.
First leu
editIn 1867, copper 1, 2, 5 and 10 bani were issued, with gold 20 lei (known aspoliafter the FrenchNapoleons) first minted the next year. These were followed, between 1870 and 1873, by silver 50 bani, 1 and 2 lei. Silver 5 lei were added in 1880. Uniquely, the 1867 issue used the spelling 1 banu rather than 1 ban.
In 1900,cupronickel5, 10, and 20 ban coins were introduced, with holed versions following in 1905. The production of coins ceased in 1914, recommencing in 1921 with aluminum 25 and 50 ban pieces. Cupronickel 1 and 2 lei coins were introduced in 1924, followed bynickelbrass 5, 10, and 20 lei in 1930. In 1932, silver 100 lei coins were issued. However, inflation meant that in 1935, smaller silver 250 lei coins were introduced with nickel 100 lei coins being issued in 1936, followed by nickel 50 lei in 1937.
In 1941 and 1942,zinc2, 5, and 20 lei coins were introduced, together with silver 200 and 500 lei. Nickel-clad-steel 100 lei followed in 1943, with brass 200, and 500 lei issued in 1945. In 1946 and 1947, postwar inflation brought the exchange rate even lower, and a new coinage was issued consisting of aluminum 500 lei, brass 2,000, and 10,000 lei, and silver 25,000, and 100,000 lei.
Second leu
editCoins were issued in 1947 after the revaluation in denominations of 50 bani, 1, 2, and 5 lei and depicted the portrait of KingMichael I.This coin series was brief, preceded by the king's abdication less than a year later and replaced following the establishment of communist administration in Romania in 1948, reissued gradually in denominations of 1, 2, 5, and 20 lei in nickel-brass alloy, and later inaluminum.All second leu coins were discontinued and devalued in late 1952.
Third leu
editCoins were first issued in 1952 in denominations of 1, 3, 5, 10, 25, and 50 bani, with aluminum bronze for 1, 3, and 5 bani, and cupronickel for 10, 25, and 50 bani. These coins featured the state arms and name "Republica Populară Romînă".
In 1960, a new series of coins was issued in denominations of 5, 15, & 25 bani and 1 and 3 lei struck in nickel-plated steel. Starting in 1966, the name on all coins was changed to "Republica Socialistă România" following the ascent ofNicolae Ceaușescu,though all pre-1966 coins of these denominations remained valid. In 1975, the composition of 5 and 15 ban coins was changed to aluminum, and the 25 bani followed suit in 1982. In 1978, an aluminum 5 leu coin was introduced. These denominations remained in use until 1991, particularly the 5 lei, following the lifting of state-mandated exchange rates and price controls.
In 1991, a new coin series with post-communist iconography and new valuations was released in denominations of 1, 5, 10, 20, 50, and 100 lei. These coins gradually lost value with inflation, and a new series was introduced in 1998 with an aluminum-magnesiumalloy 500 leu and 1,000 and 5,000 leu coins in 2000.
Fourth leu
editThe coins that are currently in circulation areone ban,made of brass-plated steel;five bani,made of copper-plated steel;ten baniin nickel-plated steel; andfifty baniin nickel brass. These were first introduced into circulation in 2005 with the fourth revaluation and are all currently valid. There are six 50 bani commemorative circulating coins made in 2010, 2011, 2012, 2014, 2015 and 2016.[citation needed]
The currentcoins of the Romanian leuare by any objective standards of functional austere design, surpassing in lack of decoration even the plainest Communist-era predecessors.[citation needed]
The one ban coin was rarely seen and not in demand by either banks or many retailers; the 'situation' has changed and the coin is not uncommonly found (as of 2015). Supermarkets continue habitually to advertise prices such as9.99(lei), and frequently price goods to the precise ban such as9,47;[14]indeed, as of 2014, very few of the prices displayed at theCarrefouronline site (for example) display prices to the nearest 5 or 10 bani. In practice, many retailers roundtotalsto the nearest 5 or 10 bani for cash payments, or even whole leu, although (inter)national supermarket chains generally give exact change. For card payments the exact amount (not rounded) is always charged. The reversion to single ban pricing (and change giving) is perhaps due to the (effective) government drive for shops/businesses to give a receipt, an accuratebon fiscal(to avoid tax evasion) for every transaction. Official notices must be prominently displayed in all shops/restaurants that an accurate receiptmustbe given.[citation needed]
Banknotes
editFirst leu
edit| 1917 fractional leu | ||
|---|---|---|
| 10 bani | 25 bani | 50 bani |
In 1877, state notes were introduced in denominations of 5, 10, 20, 50, 100, and 500 lei. In 1880, these notes were overstamped for issue by the Banca Națională a României, which began to issue regular notes in 1881 in denominations of 20, 100, and 1,000 lei.
In 1914, five leu notes were reintroduced, followed by one and two leu notes in 1915 and 500 lei in 1916. The Ministry of Finance issued very small-sized notes for 10, 25 and 50 bani in 1917. 5,000 lei notes were introduced in 1940, followed by 10,000 and 100,000 lei in 1945 and 1,000,000 and 5,000,000 lei in 1947. In 1945, the Ministry of Finance issued 20 and 100 leu notes to replace those of the National Bank.
Second leu
editIn 1947, the Ministry of Finance introduced 20 lei notes and Banca Națională a României introduced 100, 500 and 1,000 lei notes. In 1949,Banca Republicii Populare Românetook over the production of paper money and issued 500 and 1,000 lei notes.[citation needed]
Third leu
editIn 1952, the Ministry of Finance introduced notes for 1, 3, and 5 lei, and theBanca Republicii Populare Româneintroduced 10, 25 and 100 leu notes. In 1966, the Banca Națională a Republicii Socialiste România took over the production of all paper money, issuing notes for 1, 3, 5, 10, 25, 50 and 100 lei.
In 1991, 500 and 1,000 leu notes were introduced, followed by 200 and 5,000 leu notes in 1992, 10,000 lei in 1994, 50,000 lei in 1996, 100,000 lei in 1998, 500,000 lei in 2000 and 1,000,000 lei in 2003. There was also a commemorative2,000 lei noteintroduced in 1999 celebrating thetotal solar eclipsethat occurred on 11 August 1999. The final issues of the 2,000, 10,000, 50,000, 100,000, 500,000, and 1,000,000 lei werepolymer notes.
Notes in circulation at the revaluation were:
- 10,000 lei (became 1 leu)
- 50,000 lei (became RON 5)
- 100,000 lei (became RON 10)
- 500,000 lei (became RON 50)
- 1,000,000 lei (became RON 100)
Fourth series
editIn 2005, polymer notes were introduced for 1 leu, 5, 10, 50, 100 and RON 500. RON 200 notes were added in 2006. The designs of the 1 leu, 5, 10, 50, and RON 100 notes are based on those of the earlier 10,000, 50,000, 100,000, 500,000, and 1,000,000 leu notes which they replaced. The RON 10 note was redesigned in November 2008 (most of the graphic elements are identical, some of the safety elements were changed, making its safety features similar to the lower-valued notes for 1 leu and RON 5). The highest-value coin (in general circulation) is 50 bani (around 15 cents US or 9 pence sterling); the 1 leu note (there is no coin) has, therefore, a value of (approximately) 25 cents US or 18 pence sterling, or around 23 euro cents.[citation needed]
In preparation for Romania joining the Eurozone, banknotes of the fourth leu are of equal size toEuro banknotes.
The RON 20 banknote was introduced by theNational Bank of Romaniain November 2021.[15]
List of current banknotes
edit| Value | Image | Size | Main Colour | Description | Earlier Series in circulation |
Latest Series | |||
|---|---|---|---|---|---|---|---|---|---|
| Obverse | Reverse | Dimensions (millimetres) |
Euro equivalent | Obverse | Reverse | ||||
| 1 leu | 
|
|
120 × 62 | €5 | Green | Nicolae Iorgaandmilkweed gentian | Cathedral of Curtea de Argeș,TheWallachianEagle | Series 2005[16] | Series 2018[17] |
| 5 lei | 
|
|
127 × 67 | €10 | Violet | George Enescuandcarnation | Romanian Athenaeum | ||
| 10 lei | 
|
|
133 × 72 | €20 | Pink and light red | Nicolae Grigorescuandalthaea | Traditional house fromOltenia,Nicolae Grigorescu painting Rodica | Series 2005 Series 2008[18] | |
| 20 lei | 
|
|
136 x 77 | None | Olive green | Ecaterina Teodoroiuandcrocus flavus | Mausoleum of Mărășești,Victoriaas depicted on theRomanian Victory Medal | series 2021 | Series 2021 |
| 50 lei | 
|
|
140 × 77 | €50 | Yellow | Aurel Vlaicuandedelweiss | A Vlaicu IIairplane design, eagle head | Series 2005 | Series 2018 |
| 100 lei |
|
|
147 × 82 | €100 (ES1) | Blue | Ion Luca Caragialeandsweet violet | National Theatre of Bucharest(old building), Statue of Ion Luca Caragiale, byConstantin Baraschi | ||
| 200 lei | 
|
|
150 × 82 | None | Brown and orange | Lucian Blagaandpoppies | Awatermill,TheHamangia Thinker | Series 2006[19] | |
| 500 lei | 
|
|
153 × 82 | €200 (ES1) | Gray and violet | Mihai Eminescuandtilia | Central University Library of Iași,Timpul(the Times) newspaper | Series 2005 | |
Exchange rates
edit
| Current RON exchange rates | |
|---|---|
| FromGoogle Finance: | AUDCADCHFCNYEURGBPHKDJPYUSDTRY |
| FromYahoo! Finance: | AUDCADCHFCNYEURGBPHKDJPYUSDTRY |
| FromXE.com: | AUDCADCHFCNYEURGBPHKDJPYUSDTRY |
| From OANDA: | AUDCADCHFCNYEURGBPHKDJPYUSDTRY |
See also
editReferences
edit- ^"Banca Națională a României - Proiecții BNR".
- ^"Banca Națională a României (http://www.bnr.ro)".www.bnr.ro.Archived fromthe originalon 4 June 2015.Retrieved14 October2009.
- ^Euro Exhibition - Opening Speech by Mugur Isărescu, NBR Governor[permanent dead link],BNR.ro
- ^Numismatic issue - a set of three collector coins dedicated to 140 years since the establishment of military communicationsArchived29 November 2021 at theWayback Machine,BNR.ro
- ^Romanian New Leu,oanda.com
- ^"Online Etymology Dictionary".www.etymonline.com.
- ^abcdefGruia, Cătălin (2012)."Metamorfozele leului"(PDF).National Geographic Romania(July 2012). Archived fromthe original(PDF)on 12 June 2013.Retrieved21 April2013.
- ^Romania New LeuArchived2007-09-29 at theWayback Machine,Global Financial Data.com
- ^"Romaniam Leu is the least valued currency unit in the world".Banii Noștri. 18 April 2005.Retrieved28 September2008.[permanent dead link]
- ^"Central Bank: Romania 2019 euro membership 'not feasible'".EUObserver. 30 September 2015.Retrieved30 December2015.
- ^"Questions and answers: Convergence report reviews Member States' progress towards joining the euro area".European Commission.10 June 2020.
- ^"Florin Cîțu: România poate intra în spațiul Schengen în acest an. Adoptarea monedei euro, în 2027 sau 2028".Digi24(in Romanian). 19 February 2021.Retrieved5 July2021.
- ^Ernst, Iulian (16 December 2021)."Romania to postpone euro adoption target until 2029".bne IntelliNews.
- ^(in Romanian)Gândul,Moneda de 1 ban n-are căutare,3 November 2005. Accessed on 1 January 2007
- ^"Banca Națională a României - 20 de lei - Ecaterina Teodoroiu".www.bnr.ro.Retrieved26 November2021.
- ^http://bnr.ro/apage.aspx?pid=404&actId=144169Circulara BNR nr. 14/2005 - emisiuni 2005
- ^http://bnr.ro/page.aspx?prid=14179BNR press release
- ^http://bnr.ro/apage.aspx?pid=404&actId=319974Circulara BNR nr. 37/2008 - bancnota de 10 lei reproiectată
- ^http://bnr.ro/apage.aspx?pid=404&actId=319974Circulara BNR nr. 23/2006 - bancnota de 200 lei
External links
edit
- Current legal tender pictures
- Site with historical and current Romanian coins
- The Banknotes of Romania(in English and German)
- The Banknotes of the Socialist Republic of Romania(in English and German)
- The Banknotes of Romania - Nearly Complete
