Romanian Lei
   HOME

TheInfoList



OR:

The Romanian leu (, plural lei ; ISO code: RON; numeric code: 946) is the currency of
Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...
. It is subdivided into 100 (, singular: ), a word that also means "money" in the
Romanian language Romanian (obsolete spelling: Roumanian; , or , ) is the official and main language of Romania and Moldova. Romanian is part of the Eastern Romance languages, Eastern Romance sub-branch of Romance languages, a linguistic group that evolved fr ...
.


Etymology

The name of the currency means "lion", and is derived from the Dutch thaler ( "lion thaler/dollar"). The Dutch ''leeuwendaalder'' was imitated in several German and Italian cities. These coins circulated in Romania, Moldova and Bulgaria and gave their name to their respective currencies: the ''Romanian leu'', the ''
Moldovan leu The leu (, plural lei ; Currency symbol, sign: L; ISO 4217 code: MDL) is the currency of Moldova. Like the Romanian leu, the Moldovan leu is subdivided into 100 bani ( ban). The name of the currency originates from a Romanian word which means "li ...
'' and the ''
Bulgarian lev The ''lev'' (, plural: / , ; ISO 4217 code: BGN; numeric code: 975) is the currency of Bulgaria. In old Bulgarian, the word ''lev'' meant "lion"; the word "lion" in the modern language is ''lаv'' (; in Bulgarian: ). The lev is divided in 100 '' ...
''.


History


First leu: 1867–1947

In 1860, the
Domnitor ''Prince Domnitor'', in full ''Principe Domnitor'' (Romanian pl. ''Principi Domnitori'') was the official title of the ruler of Romania between 1862 and 1881. It was usually translated as "prince regnant" in English and most other languages, ...
Alexandru Ioan Cuza Alexandru Ioan Cuza (, or Alexandru Ioan I, also Anglicised as Alexander John Cuza; 20 March 1820 – 15 May 1873) was the first ''domnitor'' (prince) of the Romanian Principalities through his double election as List of monarchs of Moldavia ...
attempted to create a national ''românul'' ("the Romanian") and the ''romanat''; however, the project was not approved by the Ottoman Empire. On 22 April 1867, a bimetallic currency was 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. Before 1878 the silver
Russian ruble The ruble or rouble (; Currency symbol, symbol: ₽; ISO 4217, ISO code: RUB) is the currency of the Russia, Russian Federation. Banknotes and coins are issued by the Central Bank of Russia, which is Russia's central bank, monetary authority ind ...
was valued so highly as to drive the native coins out of circulation. Consequently, in 1889, Romania unilaterally joined the
Latin Monetary Union The Monetary Convention of 23 December 1865 was a unified system of coinage that provided a degree of monetary integration among several European countries, initially Belgium, France, Italy and Switzerland, at a time when the circulation of bank ...
and adopted a
gold standard A gold standard is a backed currency, monetary system in which the standard economics, economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the ...
.
Silver Silver is a chemical element; it has Symbol (chemistry), symbol Ag () and atomic number 47. A soft, whitish-gray, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. ...
coins 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 The pound or lira (sign: LT; ; ; ; ; ) was the currency of the Ottoman Empire from 1844 until 1927, when it was replaced by the Turkish lira. Although the Ottoman Empire was abolished in 1922, the Ottoman lira remained in circulation until the ...
(22.70 lei), Russian rubles (20.60 lei) and British sovereigns (25.22 lei). Romania left the gold standard in 1914 and the leu's value fell. The exchange rate was pegged at 167.20 lei to
US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
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's
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
alliance with
Nazi Germany Nazi Germany, officially known as the German Reich and later the Greater German Reich, was the German Reich, German state between 1933 and 1945, when Adolf Hitler and the Nazi Party controlled the country, transforming it into a Totalit ...
, the leu was pegged to the
reichsmark The (; sign: ℛ︁ℳ︁; abbreviation: RM) was the currency of Germany from 1924 until the fall of Nazi Germany in 1945, and in the American, British and French occupied zones of Germany, until 20 June 1948. The Reichsmark was then replace ...
at a rate of 49.50 lei to RM 1, falling to 59.5 lei = RM 1 in April 1941. During
Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
occupation, the exchange rate was 1 ruble to 100 lei. After the war, the value of the currency fell dramatically and the National Bank issued a new leu, which was worth 20,000 old lei.


Second leu (ROS): 1947–1952

A revaluation ("Great stabilization", ') took place on 15 August 1947, replacing the old leu at a rate of 20,000 old lei = 1 stabilized leu. 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. Out of the 48.5 billion old lei in circulation, only around half were changed to stabilized lei. The most affected was the
middle Middle or The Middle may refer to: * Centre (geometry), the point equally distant from the outer limits. Places * Middle (sheading), a subdivision of the Isle of Man * Middle Bay (disambiguation) * Middle Brook (disambiguation) * Middle Creek ...
and upper classes, who were later also affected by the nationalization of 1948. At the time of its introduction, 150 new lei equalled 1 US dollar.


Third leu (ROL): 1952–2005

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. 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. 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 the Ceaușescu regime to accept inflation as a phenomenon in order to attain convertibility, led to one of the greatest supply side crises in 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. 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. After the downfall of
communism Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...
in the 1990s, 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, one
euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
was 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. The Romanian leu was briefly the world's least valued currency unit, from January (when the
Turkish lira The lira (; Currency sign, sign: Turkish lira sign, ₺; ISO 4217, ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey. It is also legal tender in the ''de facto'' state of the Turkish Republic of Northern Cyprus. One lira i ...
dropped 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.


Fourth leu (RON): 2005–present

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 In monetary economics, redenomination is the process of changing the face value of banknotes and coins in circulation. It may be done because inflation has made the currency unit so small that only large denominations of the currency are in cir ...
". 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. 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.


Speculation about joining the Eurozone

In 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. 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. In February 2021, then-
Prime Minister A prime minister or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. A prime minister is not the head of state, but r ...
Florin Cîțu Florin Vasile Cîțu (; born 1 April 1972) is a Romanian politician who served as Prime Minister of Romania between December 2020 and November 2021 (acting/ad interim between October and November 2021). Sometimes labeled as Romania's first liber ...
stated that Romania could join the
Eurozone The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency ...
in 2027 or 2028, although Romanian economist announced in December 2021 that this date had been delayed to 2029.


Coins

The size and composition of coins changed frequently after the introduction of the currency.


First leu

In 1867, copper 1, 2, 5 and 10 bani were issued, with gold 20 lei (known as ''poli'' after the French Napoleons) 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,
cupronickel Cupronickel or copper–nickel (CuNi) is an alloy of copper with nickel, usually along with small quantities of other metals added for strength, such as iron and manganese. The copper content typically varies from 60 to 90 percent. ( Monel is a n ...
5, 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 by
nickel Nickel is a chemical element; it has symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive, but large pieces are slo ...
brass 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,
zinc Zinc is a chemical element; it has symbol Zn and atomic number 30. It is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodic tabl ...
2, 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

Coins were issued in 1947 after the revaluation in denominations of 50 bani, 1, 2, and 5 lei and depicted the portrait of King
Michael I Michael I may refer to: * Pope Michael I of Alexandria, Coptic Pope of Alexandria and Patriarch of the See of St. Mark in 743–767 * Michael I Rangabe, Byzantine Emperor (died in 844) * Michael I Cerularius, Patriarch Michael I of Constantinop ...
. 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 in
aluminum Aluminium (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...
. All second leu coins were discontinued and devalued in late 1952.


Third leu

Coins 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 of
Nicolae Ceaușescu Nicolae Ceaușescu ( ; ;  – 25 December 1989) was a Romanian politician who was the second and last Communism, communist leader of Socialist Romania, Romania, serving as the general secretary of the Romanian Communist Party from 1965 u ...
, 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-
magnesium Magnesium is a chemical element; it has Symbol (chemistry), symbol Mg and atomic number 12. It is a shiny gray metal having a low density, low melting point and high chemical reactivity. Like the other alkaline earth metals (group 2 ...
alloy 500 leu and 1,000 and 5,000 leu coins in 2000.


Fourth leu

The coins that are currently in circulation are one ban, made of brass-plated steel; five bani, made of copper-plated steel;
ten bani The ten-bani coin is a coin of the Romanian leu. It was reintroduced on 1 July 2005 and is the second-largest denomination coin in Romania. In addition to Romania, it has been minted in the United Kingdom (1867), Belgium (1900, 1905-1906), Germany ...
in nickel-plated steel; and fifty bani in nickel brass. These were first introduced into circulation in 2005 with the fourth revaluation and are all currently valid. There are twelve 50 bani commemorative circulating coins made in 2010, 2011, 2012, 2014, 2015, 2016, 2017, 2018 and 2019

The current coins of the Romanian leu are by any objective standards of functional austere design, surpassing in lack of decoration even the plainest Communist-era predecessors. 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 as ''9.99'' (lei), and frequently price goods to the precise ban such as ''9,47''; indeed, as of 2014, very few of the prices displayed at the
Carrefour Carrefour Group, S.A. (, ), is a French multinational retail and wholesaling corporation headquartered in Massy, Essonne, Massy, France. It operates a chain of hypermarkets, grocery stores and convenience stores. By 2024, the group had 14,000 ...
online site (for example) display prices to the nearest 5 or 10 bani. In practice, many retailers round ''totals'' to 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 accurate ''bon fiscal'' (to avoid tax evasion) for every transaction. Official notices must be prominently displayed in all shops/restaurants that an accurate receipt ''must'' be given.


Banknotes


First leu

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

In 1947, the Ministry of Finance introduced 20 lei notes and Banca Națională a României introduced 100, 500 and 1,000 lei notes. In 1949, took over the production of paper money and issued 500 and 1,000 lei notes.


Third leu

In 1952, the
Ministry of Finance A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position . A ministry of finance's portfoli ...
introduced notes for 1, 3, and 5 lei, and the introduced 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 commemorative 2,000 lei note introduced in 1999 celebrating the total solar eclipse that 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 were polymer notes. Notes in circulation at the revaluation were: * 10,000 lei (became 1 leu) * 50,000 lei (became ) * 100,000 lei (became ) * 500,000 lei (became ) * 1,000,000 lei (became )


Fourth series

In 2005, polymer notes were introduced for 1 leu, 5, 10, 50, 100 and . notes were added in 2006. The designs of the 1 leu, 5, 10, 50, and 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 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 ). 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. In preparation for Romania joining the Eurozone, banknotes of the fourth leu are of equal size to
Euro banknotes Banknotes of the euro, the common currency of the eurozone (euro area members), have been in circulation since the first series (also called ''ES1'') was issued in 2002. They are issued by the national central banks of the Eurosystem or the Eur ...
. The banknote was introduced by the
National Bank of Romania The National Bank of Romania (, BNR) is the central bank of Romania and was established in April 1880. Its headquarters are located in the capital city of Bucharest. The National Bank of Romania is responsible for the issue of the Romanian le ...
in November 2021.


List of current banknotes


Exchange rates


See also

*
Economy of Romania The economy of Romania is a developing mixed economy, with a high degree of complexity. It ranks 12th in the European Union by total nominal GDP and 7th largest when adjusted by purchasing power (PPP). The World Bank notes that Romania's effort ...
*
History of coins in Romania The history of coins in the area that is now Romania spans over a 2500-year period; coins were first introduced in significant numbers to this area by the Ancient Greece, Greeks, through their colonies on the Black Sea shore. Ancient coins The ...
* Banknotes of the Romanian leu * Romania and the euro *
List of currencies in Europe There are 27 currency, currencies currently used in the List of countries in Europe#Recognised states, 50 countries of Europe. All ''de facto'' present currencies in Europe, and an incomplete list of the preceding currency, are listed here. In E ...


References


External links


Current legal tender pictures








{{DEFAULTSORT:Romanian Leu Leu, Romanian 1867 introductions Circulating currencies Currencies of Europe