Wednesday, April 13, 2005Mugur Is?rescu, the governor of the National Bank of Romania (BNR) predicted yesterday that Romania would adopt the euro sometime between 2012 and 2014, possibly joining the Exchange Rate Mechanism II as early as 2010.
In July 2004, Romania will revalue its currency, the leu, so that 10,000 old lei will equal 1 new leu, with 1 euro being equal to approximately 3.6 new lei. Dual pricing, in both the old leu and the new leu, has already been introduced from March 2005. The transition to the new leu is expected to stabilise the Romanian currency and prepare the country for euro adoption.
After Is?rescu’s declaration, many people commented that they were surprised by how late the target date for euro adoption had been set, being 7-9 years away. However, Is?rescu responded by stating that the new Central European members of the European Union, which joined in 2004, have not yet joined the euro, and that countries such as the Czech Republic, Poland and Hungary are only expected to adopt the currency between 2008-2010, 4-6 years after accession. In Romania’s case, the adoption will take place 5–7 years after accession in 2007.