Romanian Leu (1952–2006)

The Romanian leu (plural: lei) is the currency of Romania. It is subdivided into 100 bani (singular: ban). The name of the currency derives from the Latin word "libra", meaning "pound". The leu was introduced in 1867, during the reign of Carol I of Romania. It replaced the earlier currencies, the Austrian krone and the Russian ruble, at par. The leu was pegged to the French franc during most of the 19th century and early 20th century. After World War I, Romania briefly switched to the gold standard before returning to the franc peg in 1929. During World War II, Romania was one of the Axis Powers and as such its currency was subject to strict exchange controls by the Allies. When the war ended, Romania switched back to the franc, but this time it was pegged to the Soviet ruble. In 1948, the Communist regime in Romania introduced a new currency, the Romanian new leu, which was equal to 10,000 old lei. This was followed by a revaluation in 1952, when one new leu was equal to 100,000 old lei. In 1989, Romania abandoned Communism, and a new currency, the Romanian leu, was introduced. It was initially equal to 10,000 old lei, but a further revaluation in 2005 set the exchange rate at 2,000 old lei to 1 new leu. The Romanian leu is freely convertible and is traded on the Bucharest Stock Exchange. It is also a member of the European Union since 1 January 2007 and part of the Eurozone since 1 January 2009.