Establishment of foreign exchange regime

Pursuant to its Statute, the National Bank of Romania sets and oversees the application of the foreign exchange regime on the territory of Romania.

Main tasks of the NBR:

1. to formulate and implement the exchange rate policy;
2. to draw up the balance of payments and other papers on Romania's international investment position;
3. as regards the exchange rate:
   • to set the exchange rate of the domestic currency for its own operations on the forex market;
   • to compute and publish the average exchange rates ruling in the forex market for statistical purposes;
   • the exchange rate ruling in the interbank forex market is determined freely, based on the interaction of demand and supply;
4. to keep and manage official reserves.

Applicable legislation

Regulation No. 6/2012 (Romanian only) amending and supplementing the NBR Regulation no. 4/2005 regarding foreign exchange regime and annulling the NBR Norm 4/2005 regarding foreign exchange operations

Regulation No. 4/2005 (re-published) regarding foreign exchange regime

• Annex 1: Nomenclature
• Annex 2: Categories of residents who may perform foreign currency operations
• Annex 3: List of capital transactions referred to in Art. 6 para. (1) of this Regulation
• Annex 4: List of the safeguard measures in respect of capital transactions referred to in Art. 6 para. (5) of this Regulation

Norm No. 3/2005 on the operation of interbank foreign exchange market

• Annex: Nomenclature

Norm No.10/2007 (Romanian only)

Foreign exchange regime in Romania

Regulation No. 4/2005 issued by the National Bank of Romania sets the foreign exchange regime in Romania. As notified on 25 March 1998, Romania accepted the obligations laid down in Art. VIII, Sections 2, 3 and 4 of the IMF's Articles of Agreement, namely:

• the authorities' commitment to remove all restrictions on current transactions;
• non-introduction of other restrictions in the future;
• creation of conditions as favourable as possible for the relaunch of economic reform;
• the foreign exchange policy should not be subject to significant alterations.

Basic provisions of the regulation on foreign exchange regime

1. Rights of residents and non-residents

   Residents and non-residents:

   • may acquire, hold and use any foreign- and domestic-currency-denominated financial assets ("full retention");
   • may open and keep accounts in both foreign and domestic currencies with credit institutions or other similar institutions, as the case may be;
   • may perform freely and without restrictions current and capital transactions;
   • non-residents may repatriate and transfer abroad financial assets held in Romania.
2. Access to forex market
   • Access of residents and non-residents to buying/selling of foreign currency is free for all foreign currency operations;
   • Convertibility of current and capital transactions is ensured for both residents and non-residents;
   • Buying/selling of foreign currency may be performed by forex market intermediaries alone;
   • Buying/selling of foreign currency by resident natural persons via exchange houses and credit institutions is not limited.
3. Capital transactions

   All capital transactions have been liberalised as of 1 September 2006.

   For statistical purposes, capital transactions causing external obligations arising out of commitments longer than one year, other than those of the nature of external public debt, shall be registered with the National Bank of Romania in "Romania's Register of External Private Debt".

4. Collections and payments between residents

   Collections and payments between residents may be performed:

   • in domestic currency - for the operations that are subject to goods and services trade;
   • in domestic and foreign currency:
     • for the operations that are subject to goods and services trade, which are excepted in accordance with the provisions of the Regulation on foreign exchange regime:
       • legal persons - for operations arising out of trade contracts and provision of external services based on agency contracts; subcontracts arising out of international economic co-operation contracts, export contracts for complex units and long manufacturing cycle products, contracts for the provision of goods and services related to external contracts;
       • natural persons - for occasional foreign currency operations between natural persons;
       • natural and legal persons and other entities - for operations laid down by express legal provisions; for operations arising out of organisation and/or provision of external services (transport, tourism); for operations arising out of external contracts under outward processing traffic arrangements; for operations arising out of trade carried out in harbours, airport "free zones", border checkpoints, international trains, aboard aircraft and ships on international routes; operations performed abroad.
     • for the operations that are not subject to goods and services trade.
5. Contents of foreign exchange regulations
   • NBR Regulation No. 4 (revised) of 1 April 2005 on the foreign exchange regime has 5 chapters and 4 annexes, as well as 1 norm for its enforcement, as follows:
     • Chapter I - General provisions
     • Chapter II - Foreign exchange regime
     • Chapter III - Protective measures
     • Chapter IV - Common provisions
     • Chapter V - Final provisions
     • Annex 1 - Nomenclature of foreign currency operations
     • Annex 2 - Categories of residents that may perform foreign currency operations
     • Annex 3 - List of capital transactions referred to in Art. 6 para. (1) of this Regulation
     • Annex 4 - List of the safeguard measures in respect of capital transactions referred to in Art. 6 para. (5) of this Regulation
   • Norm No. 3/2005 on the operation of interbank forex market (amended by Norm No.10/2007)

Harmonisation with EU legislation

• The Regulation establishing the foreign exchange regime fully transposes the provisions of the European Treaty on liberalising capital movements and setting safeguard measures for foreign exchange operations to be considered in case of substantial changes in domestic liquidity and severe imbalances of the balance of payments;
• Definition of current and capital transactions, as well as their nomenclature, are harmonised with EU Directives;
• Definition of current transactions is broadly in line with the provisions of Art. XXX of the IMF's Articles of Agreement.