The official currency of Romania is the Romanian Leu (RON), a currency that holds a significant place in the country’s economy and history.
As of September 2024, the Leu remains the only legal tender in Romania, playing a vital role in both daily transactions and larger financial operations.
This article delves into the origins, modern use, exchange rates, and practical considerations when dealing with the Romanian Leu.
History of the Romanian Leu
The name Leu, meaning “lion” in Romanian, has been part of the country’s monetary system for centuries. It originally referred to silver coins that featured a lion on them, which circulated in the region during the 17th century.
Over time, the name became synonymous with Romania’s currency. However, the modern Leu has gone through several changes due to various economic crises.
In 2005, Romania underwent a significant monetary reform that replaced the old leu (ROL) with the new leu (RON) at a rate of 10,000 old leu to 1 new leu.
This change was crucial for stabilizing the currency and preparing Romania for potential integration into the Eurozone.
Despite the transition, many older generations in Romania still reference prices in “millions” of the old leu, which can lead to some confusion for tourists and newer residents.
Current Exchange Rates
As of September 24, 2024, the Romanian Leu remains stable, though it fluctuates against international currencies depending on global economic conditions. The latest exchange rates indicate that 1 Romanian Leu (RON) equals approximately:
1.74 Guatemalan Quetzal (GTQ)
32.15 Japanese Yen (JPY)
0.84 Israeli Sheqel (ILS)
This reflects the Leu’s position as a relatively moderate currency on the global stage, holding steady against major international currencies.
Usage and Acceptance of Foreign Currency
In Romania, the Leu is the only legal tender, and it is used for most financial transactions. Although larger cities like Bucharest, Cluj, and Brașov may allow payments in Euros or US Dollars at specific tourist-heavy locations, these instances are relatively rare.
Even in such cases, the exchange rates offered at shops and restaurants are usually unfavorable, so it is recommended to exchange money into the local currency before making purchases.
One important note for travelers is that cash is still widely used in Romania. While major stores and establishments in urban areas accept credit cards, many smaller vendors, especially in rural areas and open markets, only take cash. Therefore, it’s advisable to carry enough Leu for daily expenses.
The Euro in Romania: Will It Replace the Leu?
Romania is a member of the European Union (EU), and there have been ongoing discussions about adopting the Euro as its official currency.
Despite these talks, Romania has yet to set an official date for Euro adoption. Several economic reforms and conditions must be met before the Leu can be phased out in favor of the Euro. Until then, the Leu will continue to serve as the country’s primary currency.
The process to join the Eurozone is complex, and the Romanian government has stressed the need for economic stability and growth before making the transition. This means the Leu will remain in circulation for the foreseeable future.
Practical Tips for Handling the Leu
If you’re traveling or doing business in Romania, here are some tips to navigate the currency:
Exchange money at official locations: Use banks or authorized exchange offices for getting the best rates. Avoid exchanging at airports or tourist hubs, as they tend to offer poor exchange rates.
Carry cash: As mentioned earlier, cash is king in Romania, especially in rural areas. Make sure to have small denominations on hand for day-to-day expenses.
Be cautious of confusion: Older Romanians might still refer to prices in the old Leu (ROL), which can be confusing. Always clarify whether the amount quoted is in “new” Leu (RON)(
Romania Travel
).
Monitor exchange rates: Whether traveling to Romania or conducting business, it’s a good idea to keep an eye on the daily exchange rate for the Leu. While the currency is relatively stable, shifts can occur due to economic conditions within Romania and globally.
FAQs
Q: What is the currency of Romania?
A: The currency of Romania is the Romanian leu (plural: lei), which is denoted by the symbol “RON”.
Q: What is the history of the Romanian leu?
A: The Romanian leu has been the country’s official currency since 1867. It replaced the old “taler” and “franc” currencies. Throughout its history, it has undergone various reforms and revaluations to maintain its stability.
Q: What are the denominations of the Romanian leu?
A: The Romanian leu is available in banknotes and coins. Banknotes come in denominations of 5, 10, 50, 100, 200, and 500 lei. Coins are available in denominations of 1, 5, 10, 25, and 50 bani (100 bani equals 1 leu).
Q: Where can I exchange Romanian currency?
A: You can exchange Romanian currency at banks, exchange offices, and sometimes at hotels. However, it’s often more convenient and cost-effective to exchange currency at ATMs.
Q: Can I use credit cards in Romania?
A: Yes, major credit cards like Visa, Mastercard, and American Express are widely accepted in Romania, especially in tourist areas and larger cities. However, it’s always a good idea to carry some cash for smaller establishments or rural areas.
Q: Is the Romanian leu a strong currency?
A: The strength of the Romanian leu can fluctuate. It’s generally considered a relatively stable currency, but its value can be influenced by factors like economic conditions, inflation, and international trade.
Conclusion
The Romanian Leu has a rich history and continues to be a pivotal part of Romania’s economy. While there are ongoing discussions about adopting the Euro, the Leu remains the everyday currency for most Romanians.
For visitors and locals alike, understanding how the Leu functions, its exchange rates, and how it fits into the broader global economy is essential for a smooth experience in Romania.
Whether you are planning to travel, invest, or simply want to understand the country’s financial landscape, being well-informed about the Romanian Leu will help you navigate Romania’s monetary system confidently.
To read more, click here.
