bani. It is nonconvertible and usable only within the country. The
leu is officially defined to contain 148.112 milligrams of fine gold, so
that 5.53 lei are equivalent to US$1. This basic rate of exchange became
effective on December 23, 1971, in the wake of the agreement reached by
the United States with other major Western trading nations to devalue
the American dollar; before that date the rate was 6 lei per US$1. The
basic rate is used in foreign trade accounting and is also applicable to
nonresident accounts created by a transfer of foreign currencies into
Romania.

A wide range of official noncommercial or tourist exchange rates is in
effect for residents of other communist countries. These rates vary from
about one-third to more than double the basic rate. Tourist rates for
noncommunist country currencies embody a bonus of 189 percent over the
basic rate, making 16 lei equivalent to US$1. In addition to the
official exchange rates there are at least thirty-seven semiofficial
rates resulting from seven multilateral trade and payments agreements
with members of the Council for Mutual Economic Assistance (COMECON) and
thirty bilateral agreements with other communist and noncommunist
states.

The state has a monopoly of foreign exchange. Control over currency and
foreign exchange is vested in the National Bank and administered by the
bank jointly with the Ministry of Finance and the Romanian Foreign Trade
Bank. All foreign exchange realized by state agencies from exports and
other foreign operations must be surrendered to the Romanian Foreign
Trade Bank, which also controls all exchange expenditures abroad.

Transferability of funds by private individuals is strictly limited.
Only 15 to 30 percent of inheritances, royalties, pensions, and support
payments derived from abroad may be used or retransferred; from 70 to 85
percent of the sums received must be surrendered at the tourist rate of
exchange. Residents may send small amounts and get travel allocations to
COMECON and some Western countries. Most currency transactions by
individuals with residents in Western states are prohibited. Residents
may not own foreign currencies or securities or have bank balances
abroad without official permission, nor may they import or export
Romanian banknotes. They are forbidden to own or trade in gold, to
export jewelry and diamonds, and to engage in foreign merchandise trade.

Controls over financial transactions by state agen