Current currency operations are carried out between residents and non-residents and arise from, without being limited to, the following:

- International trade transactions with commodities and services and other similar transaction involving an immediate counter-payment, including the transactions carried out in order to cover the foreign currency risks resulting from international trade transactions;

- Other transactions having a different nature than the capital transactions, such as taxes, commissions, fees, fines, premiums and indemnifications resulted from insurance/reinsurance contracts, save for the life and credits insurances, operational leasing, expenses with the maintenance of the owned assets of foreign countries;

- Repatriation of net revenues in the form of interests, dividends, rents deriving from capital shares;

- Any repatriation of small amounts of money representing current expenses of the family members;

Capital currency operations arise from:

- direct investments;

- real estate investments;

- operations with securities currently transacted on the capital market;

- operations with securities and other instruments currently transacted on the currency market;

- operations with units of the collective investment bodies;

- credits related to the international trading in which a resident participates;

- credits and financial loans;

- guarantees;

- operations into current accounts;

- operations into deposit accounts;

- transfers related to the performance of the life insurance and credit insurance contracts;

- Personal capital transfers;

- other capital changes.

Authorization of the NBR

In the initial regulation only current currency operations could be carried out freely, and the capital operations required the prior authorization of the National Bank. Only banks were exempt from the prior authorization, for certain categories of operations.

Starting with the date the Circular No. 22 was published in the Official Gazette all the international trade loans and the financial loans including the bills of guarantee and auxiliary financial incentives, which are granted by non-residents to Romanian residents and having a reimbursement, exceeding one year, are no longer subject to authorization by NBR.

Romanian residents who conclude international trade loans and financial loans with non-residents had only to notify such operation, (i.e.: the international loan), before it starts to be performed, to the statistics Department within the NBR. They were also held to notify the NBR of the due or early termination of the relevant operation, of the non-performance of the operation and of the amendments of the notified documents.

By the Circular of the National Bank of Romania no. 26/2001 the foreign currency regime has been amended, as detailed below.

The following capital operations are subject to prior authorization from the National Bank of Romania, if such operations are not deemed to be an external public debt:

- acceptance of foreign securities and units of the collective foreign placement bodies on the Romanian capital market;

- Transactions of the residents with foreign securities and units of the foreign placement bodies;

- Operations with securities and other instruments currently traded on the monetary market;

- Credits and financial loans granted by residents to non-residents, except for the short-term financial leasing operations;

- Credits and short-term financial loans granted by non-residents to residents;

- Guarantees provided by residents to non-residents;

- Operations in current and deposit accounts opened by residents abroad;

- Operations in deposit accounts in ROL opened by non-residents in Romania;

- Personal capital transfers representing loans granted by residents to non-residents;

- Import and export of financial assets payments instruments in cash.

Starting with November 20, 2001 the following capital operations are no longer subject to authorization:

- Direct investments performed abroad by residents;

- Real estate investments performed abroad by residents;

- Acceptance of Romanian securities and units of the collective Romanian placement bodies on a foreign capital market;

- Credits related to the international trade, on a short and long term, granted by residents to non-residents;

- Guarantees provided by non-residents to residents;

- Transfers related to performance of the insurance contracts;

- Personal capital transfers representing short-term loans granted by non-residents to residents;

- Personal capital transfers representing gifts and donations, dower, inheritance and legacies, asset transfers of the immigrants;

- Physical import and export of financial assets securities and other tradable and payment instruments, except for those in cash;

- Other capital.

Starting with January 1, 2003, the following capital operations are no longer subject to authorization:

- Transactions of residents with foreign securities and units of the collective foreign placement bodies;

- Credits and short-term financial loans granted by non-residents to residents;

- Credits and financial loans and personal loans granted by residents to non-residents;

- Guarantees provided by residents to non-residents.

Starting with January 1, 2004, the following capital operations are no longer subject to authorization:

- Acceptance of foreign securities and units of the collective foreign placement bodies on the Romanian capital market;

- Operations in deposit accounts in ROL opened by non-residents in Romania;

- Import and export of financial assets payment instruments in cash.

Up to latest of the date of Romania's adhesion to the European Union, the following capital operations are no longer subject to authorization:

- Operations with securities and other instruments currently traded on the monetary market;

- Operations in current and deposit accounts opened by residents abroad.

For statistical and informational purposes only, Romanian legal entities or individuals concluding contracts related to capital operations for a medium or long term, having the nature of an external private debt, incur the legal obligation to notify them to NBR.

On Romanian territory, payments and cashing between residents must be conducted solely in national currency (ROL), with the exception of certain categories of operations provided for under the law.

In Romania, residents and non-residents may obtain and use any type of assets expressed in currency. They may also open currency accounts with banks or financial bodies set out by the law.

Non-residents may transfer abroad, with no restrictions, the currency available funds held in the accounts opened with banks, under the law.

Where requesting the performance of an external payment, the residents incur the legal obligation to prove with documents, including the authorization, under the cases the NBR's authorization is required, the nature of the operation and the transferred amount.