NATIONAL BANK OF ROMANIA

The National Bank of Romania was established by law on April 17, 1880, with an initial capital of 30 million lei, of which 10 million was state capital, the remaining 20 million being private capital. It was invested with the privilege of issuing banknotes accepted in transactions, a privilege extended several times.

The NBR is the 13th central bank established in the world, being founded before the central bank of Japan or the US Federal Reserve system. The first banknotes issued by the NBR were of 20, 50, 100, 500, and 1000 lei. Coins made of gold, silver and copper were issued. Thanks to Gresham's Law we can understand why gold coins (20 lei face value) were kept for hoarding. Until 1948, the institution was private, controlled with an iron fist by shareholders who, more than once, defied the government; however, it can be stated (based on data) that, although de jure it was a private institution, de facto it was a state one. Both in the "private" period and in the state period (after 1948), the National Bank executed the directives of the executive, during both peacetime (economic policies) and wartime.