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Romania Implements Currency Reform

1 July 2005 (RFE/RL) -- Romania today eliminates four zeros from its currency, the leu, as part of efforts to prepare the economy for European Union accession, expected in 2007.

The denomination transforms 10,000 units of the current currency into one new unit, dubbed "the heavy leu."

The new bills and coins will circulate in parallel with the old ones until the end of 2006, but there is no time limit for exchanging the old ones at banks.

Central Bank Governor Mugur Isarescu said last week that the measure marks the end of Romania's high-inflation transition period. He said the denomination is not expected to fuel inflation.

On 30 June, the Central Bank quoted the U.S. dollar at 29,891 leu and the euro at 36,050 leu.