The Romanian government is preparing to undergo its planned re-denomination July 1, cutting four zeros off its Romanian Leu (ROL).
The New Romanian Leu – currency code RON – is designed to stabilize Romania’s economy and cut inflation. Romania historically suffers some of the worst inflation rates in Europe.
The new currency also aims to accelerate Romania’s 2007 slated accession into the European Union.
In a news release HVB officials from the Bucharest Stock Exchange said the share prices will be automatically adjusted from the ROL to the RON by the rate of 1:10,000. The price adjusting will begin June 24, the last day of trading before the currency switch.
Trading on the BSE will resume again July 4.
Officials said the nominal value of bonds traded on BSE will be automatically adjusted to the RON by dividing the ROL nominal value by the rate of 1:10,000. No further impact on bonds is expected.