EXCHANGE MARKET

According as from 30 to foreign 199 ! exchange "he regulations $$%a&ital 3/1997, account'

subsequently amended, the national currency became convertible January so#called transactions need to be a&&roved by, or notified to the (ational )an* of +omania, de&ending on their exact nature! "he exchange rate of the national currency is determined on the interban* foreign exchange mar*et that ,as established in August 199- as a &ermanent mar*et, ,here foreign currency can be bought and sold in either s&ot or for,ard transactions against domestic currency, at exchange rates freely determined by intermediaries authori.ed by the (ational )an* of +omania! )ased on the currency exchange rates used on the interban* mar*et, the ()+ establishes the daily exchange rate, ,hich is not com&ulsory! /oreign exchange rules sti&ulate that residents may conclude transactions on +omanian territory only in the local currency, the 0$leu$$, ,ith its symbol $$+12$$! "ransactions bet,een residents and non#residents may be &erformed in foreign currency through accounts o&ened at +omanian ban*s or foreign ban*s authori.ed to o&erate in +omania! "he exce&tions to the above rules are strictly limited by la,! +omanian residents are entitled to freely hold and use their foreign currency &roceeds derived from legal transactions and to ma*e direct &ayments out of their foreign currency accounts for current account o&erations such as the im&ort of goods or services, &ayment of dividends, re&atriation of &rofits! /inancial and ca&ital o&erations are ty&ically sub3ect to an authori.ation granted by the (ational )an*, exce&t for financial loans and leasing o&erations 4,ith a &eriod of more than 1 year5
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,hich are to be sim&ly notified to the ()+ for registration in the 6rivate 7xternal 8ebt +egistry! "he 0$leu 0$ is characteristic by domestic convertibility! +esident com&anies can sell or buy foreign currency only on the interban* foreign exchange mar*et, the transaction being &erformed by the com&any$s ban*! 7ach order for buying foreign currency must be 3ustified by su&&orting documents 4external contracts5!"he (ational )an* and 9overnment +egulations also establish the obligation for com&anies and ban*s to ma*e every effort to re&atriate the foreign currency derived from international transactions as quic*ly as &ossible! +esident and non#resident individuals are allo,ed to freely buy and sell foreign currency from authori.ed intermediaries! "y&ically, +omanian residents are allo,ed to freely carry out exchange o&erations! "he (ational )an* of +omania issued circular :;/:001 and circular 37/:00:, modifying +egulation 3/1997 concerning foreign exchange o&erations! "hus, for o&erations such as $$ca&ital and financial transfer$$ as listed hereafter, the authori.ation of the ()+ is no longer required< direct investments abroad by residents real estate investments abroad by residents admission of securities and &lacement on a foreign ca&ital mar*et financial loans 4to be reimbursed in more than 1 year5 granted by residents to non#residents guarantees secured by residents in favor of non#residents, &rovided that the guaranteed o&eration is not concluded bet,een t,o non#residents
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 guarantees granted by non#residents to residents transfers related to insurance contracts short#term loans granted by non#residents to residents transfers of ca&ital re&resenting gifts, legacies, transfers of assets o&erations in current and de&osit accounts o&ened abroad in the national currency by residents, in the countries ,ith ,hich +omania has concluded regional convertibility arrangements, medium or long#term financial credits and loans granted by residents to non#residents, im&ort and ex&ort of financial assets /or the follo,ing ca&ital currency o&erations carried out by ban*s on their o,n behalf, ()+ authori.ation is not required< transactions ,ith instruments s&ecific to the foreign monetary mar*et guarantees and other auxiliary financial incentives foreign exchange, current accounts and de&osit o&erations &laced abroad "he ()+ must be notified in cases of trade credits ,ith reimbursement &eriods longer than 1 year, financial credits ,ith reimbursement &eriods longer than 1 year granted by non# residents to residents, including financial leasing, as ,ell as in the case of certain guarantees or securities related to the aforementioned o&erations! (otification does not im&ly the a&&roval of the ()+ and it is made only for statistical &ur&oses 4the ()+ monitors the status of the &ayment balance at a national level5! (on#residents may acquire, hold and use &ayment instruments, listed securities and other ty&es of &lacement instruments in local currency 4+125! (on#residents may also o&en current accounts in
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+12 and in foreign currency as ,ell as de&osit accounts in foreign currency ,ithout the a&&roval of the ()+! (evertheless, de&osit accounts in +12, o&ened by non#residents in +omania are sub3ect to ()+ a&&roval! "ransactions in local currency /+12 bet,een residents and non#residents are forbidden, ,ith the exce&tion of the follo,ing< &ayments made by residents to non#residents, as &rofit, dividends, interest or other incomes deriving from ca&ital transactions authori.ed by the la, or the ()+ &ayments made by non#residents to residents , during their stay in +omania current foreign exchange o&erations bet,een residents and non#residents in cases of di&lomatic entities +12 amounts obtained by non#residents can be changed into foreign currency if su&&orting documents are &rovided! +esidents must transfer or re&atriate all amounts in foreign currency and/or local currency obtained from o&erations abroad, exce&t for taxes, commissions! "he re&atriation obligation does not a&&ly to< ban*s#for activities carried out under an o&erating authori.ation residents#com&anies authori.ed by the ()+ to hold foreign currency accounts abroad residents#individuals deriving foreign currency incomes abroad +esidents may o&en foreign currency or +12 accounts abroad only further to the authori.ation of the ()+! "he follo,ing categories of residents are not bound by this obligation< ban*s =for activities carried out under the o&erating authori.ation

 re&resentative offices, agencies, offices of +omanian legal &ersons ,ho are not registered abroad as legal &ersons , for the current ex&enses +omanian di&lomatic entities (atural and legal &ersons o,ning real estate, for the current taxes and ex&enses related to the administration of the &ro&erty >ndividuals during their stay abroad >f re&atriation is tem&orarily &rohibited under the legislation of the res&ective source country 6ayments bet,een residents are made in local currency, if this o&eration ta*es &lace on +omanian territory! /oreign currency o&erations on +omanian territory are allo,ed to the follo,ing categories of residents< )an*s = for foreign currency o&erations sti&ulated in their o&erating authori.ation %om&anies carrying out commissioning activities related to foreign trade contracts (atural and legal &ersons =for foreign currency o&erations deriving from commercial activities underta*en ,ithin free .ones (atural and legal &ersons ex&ressly authori.ed by the la, >ndividuals =for occasional hard currency o&erations "he ban*s are bound to correctly im&lement the &resent regulations, being entitled to request from their clients all necessary information and su&&orting documents !"he ()+ ,ill chec* and su&ervise com&liance ,ith the foreign exchange regulations! ?hen entering or leaving +omania, individuals must declare at the border any amount exceeding @A8 10,000! Any amounts not declared ,ill be confiscated! >ndividuals are allo,ed to bring in or ta*e out of +omania amounts of maximum +12 B00,000!
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BIBLIOGRAFY

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