Overview

The Romanian Leu (ROL) was the official currency of Romania from 1881 to 2005. It was issued by the National Bank of Romania. The Leu floated on foreign exchange markets following the fall of communism in 1989, serving as the currency for an Eastern European nation undergoing post-communist transition. The currency was redenominated and replaced by the New Romanian Leu (RON) in January 2005 at a redenomination rate of 1 RON = 10,000 ROL.

Replacement History

The Romanian Leu was redenominated and replaced by the New Romanian Leu (RON) on January 1, 2005. The redenomination reflected significant inflation accumulated during the 1990s transition period. The exchange rate at replacement: 1 RON = 10,000 ROL. The old leu notes and coins were gradually withdrawn from circulation with a multi-year exchange period.

Final Denominations (at demonetization)

Final Coins: 1, 5, 10, 50, 100 Bani; 500, 1,000, 5,000, 10,000 Lei

Final Banknotes: 500, 1,000, 5,000, 10,000, 50,000, 100,000, 500,000 Lei

Withdrawal: Completed by 2007; old currency no longer in circulation

Demonetization Context

The redenomination occurred as Romania prepared for EU accession (January 2007). The government sought to modernize the currency and support future euro adoption. The new leu was introduced to facilitate Romania's integration into European economic structures.

Historical Exchange Rates

  • 1990: 1 USD = 14 ROL (post-communist period)
  • 1995: 1 USD = ~2,200 ROL (hyperinflation period)
  • 2000: 1 USD = ~20,000 ROL (stabilization period)
  • 2004: 1 USD = ~32,000 ROL (pre-redenomination)
  • 2005: Replaced by RON at 1 RON = 10,000 ROL

Economic Context at Demonetization

At the time of redenomination in 2005, Romania was experiencing:

  • Economic growth acceleration (8%+)
  • EU accession preparation (scheduled 2007)
  • Inflation stabilization efforts
  • Foreign investment increases
  • Currency stabilization progress
  • Institutional development

Notable Characteristics

  • Eastern European transition currency: Post-communist transformation; hyperinflation experience; stabilization achievement
  • Soviet legacy: Currency continued from communist period; post-1989 transition; European integration path
  • EU integration: 2007 EU accession; euro adoption path; Western integration commitment
  • Currency collectibles: Old leu banknotes and coins now collectible; communist-era notes particularly valued

Legacy

The Romanian Leu (ROL) is now an obsolete currency. Its replacement symbolized Romania's successful post-communist transition and European integration. Romania continues to use the new leu (RON) with euro adoption expected in the future.