Currencies by Country:

What is the Romanian leu (RON)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Finally, S&P last issued a A- rating, with a negative outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Currency Details

The Romanian leu (plural “lei”), often denoted by RON, is the national currency of Romania. Subdivided into 100 bani (singular “ban”), the leu was established in 1880 after the National Bank of Romania was founded. While Moldova was a province of Romania (1918-1940), the Romanian leu circulated in that area. Following the collapse of the Soviet Union and the creation of the independent state of Moldova in 1993, the Moldovan leu, named after its Romanian predecessor, was established.

Moody’s Rating
Baa3, 06 Oct 2006
S&P Rating
BBB+

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

Romania is a democratic republic, with three branches: legislative, executive, and judicial. The legislative branch of the government consists of two chambers, the Senate (137 members) and the Chamber of Deputies (332 members). Elections for both chambers take place every four years. The President of Romania leads the executive branch and is elected by popular vote every five years (though until 2005, elections were every four years). The president appoints a prime minister to head the government. The government of Romania is subject to a parliamentary vote of approval.

Prominent Figures

Chief of State President Traian BASESCU (since 20 December 2004) Head of Government Prime Minister Emil BOC (since 22 December 2008); Deputy Prime Minister Marko BELA (since 23 December 2009) Cabinet Council of Ministers appointed by the prime minister Elections president elected by popular vote for a five-year term (eligible for a second term); election last held 22 November 2009 with runoff on 6 December 2009 (next to be held in November-December 2014); prime minister appointed by the president with the consent of the Parliament Election Results Traian BASESCU reelected president; percent of vote – Traian BASESCU 50.3%, Mircea GEOANA 49.7%

Key Economic Factors

Economic Overview:

Romania began the transition from Communism in 1989 with a largely outdated industrial foundation and lack of productivity in output. After an extremely difficult three- year recession, the country began to recover at the turn of the century (2000), due to a strong demand in European Union export markets. Despite a major slowdown over the following two years, strong domestic activity in construction, agriculture and consumption allowed for a 4% cushion of growth. In 2001, the government signed an IMF standby agreement which was approved in 2003 (the first time Romania successfully concluded an IMF agreement since the 1989 revolution). This move was accompanied by slow but steady gains in privatization, deficit reduction and the curbing of inflation. In July 2004, the IMF’s executive board approved a 24-month standby agreement for 7M; this agreement is merely precautionary, according to most Romanian authorities. As for Romania’s future, the country must more seriously consider its widespread poverty, and corruption in the business environment.

Key Industries:

Textiles, footwear, light machinery, auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, and petroleum refining.

Agricultural Products:

Wheat, corn, barley, sugar beets, sunflower seed, potatoes, grapes, eggs and sheep.

Import Commodities:

Machinery and equipment, fuels and minerals, chemicals, textile and products, basic metals and agricultural products.

Export Commodities:

Textiles and footwear, metals and metal products, machinery and equipment, minerals and fuels, chemicals and agricultural products.

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