Romanian leu: Meaning (information, definition, explanation, facts)

The Romanian leu (plural: lei; ISO 4217 code ROL) is the national currency of Romania. One leu is subdivided into 100 bani (singular: ban).

The leu was established in 1880, following the founding of the National Bank of Romania.

Before 1940, when Moldova was a province of Romania, the Romanian leu circulated in that area too.

The Moldovan leu was established in 1993, following the creation of the independent state of Moldova. It was named leu after the currency of the area back in 1940.

Etymology

In the 17th century, Dutch thalers bearing a lion (leeuwendaalder) circulated in the Romanian states were often called lei (lions). The name was kept as a generic term for money until it became in the 19th century the national currency.

After the Crimean War, a bimetallic currency was adopted, with the lei (franc) of 100 bani (centimes) as the unit of value. But after 1878 the Russian silver Rouble was rated so highly as to drive the native coins out of circulation; and in 1889 Romania joined the Latin Monetary Union and adopted a gold standard. Besides the silver pieces worth 3/4, 1, 2 and 5 lei, gold coins of 5, 10 and 20 lei were used. Silver was 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 were current, especially French 20-franc pieces (equal at par to 20 lei), Turkish gold lire (22.70), Old Russian Imperials (20.60) and English Sovereigns of (25.22). Besides bronze coins of less value than 1/2 tell, nickel pieces worth 5, 10 and 20 bani were authorized by a law of 1900.

As of December 2003, the following notes and coins are in circulation:

• coins: 500 lei; 1000 lei; 5,000 lei
• notes: 2,000 lei; 10,000 lei; 50,000 lei; 100,000 lei; 500,000 lei; 1,000,000 lei

The exchange rate is (as of June 2004): 1 € = 40,700 lei; 1 US$ = 33,700 lei (Source: the Financial Info webpage at the website of the National Bank of Romania, http://www.bnro.ro/def_en.htm)

On July 1, 2005, the Romanian leu will be revalued at the rate of 1 new leu for 10,000 "old" lei. Thus, the leu will "drop" 4 zeroes. Details about the new notes and coins are yet to be published. Current money will continue to be legal tender until the end of 2006.