Romania has moved to limit the amount of cash used in its economy, as the government aims to fight tax evasion.
Cash is popular in Romania compared to other European Union states, with many customers using cash rather than cards for transactions.
Amid public concern, Prime Minister Marcel Ciolacu said that cash won’t be banned but its use limited. Purchases in excess of 5,000 Ron, about 1,000 euros will be paid by card or online banking.
Romania’s grey economy was estimated at 29% of its GDP this year, among the highest in the EU. Only Bulgaria (33.1%) and Croatia (29.7%) had a higher rate, according to a European Parliament- commissioned study.
According to a 2021 study, Romania is currently the world’s most cash-reliant country, with an improbable 78 percent of its transactions using banknotes and coins.
