The NBR shifted to direct inflation targeting in August 2005.

This monetary policy strategy was adopted after completing a preparatory process, whose last stage was to set up and test the functioning of the economic analysis and monetary policy decision framework specific to inflation targeting (see the presentation  Preparations and Prerequisites for the Introduction of Inflation Targeting in Romania). The other prerequisites and criteria that are conditional to the effectiveness of this strategy were also fulfilled:

1. bringing the annual inflation rate to single-digit levels; 
2. earning and strengthening central bank credibility; 
3. strengthening both de jure (via the new NBR Statute effective 30 July 2004) and de facto independence of the NBR;
4. lower fiscal dominance, further fiscal consolidation and improved co-ordination between fiscal and monetary policies;
5. a relatively more flexible exchange rate of the domestic currency and diminishing the Romanian economy's vulnerability to exchange rate movements;
6. the soundness and strengthening of the banking system and a relatively higher degree of banking intermediation;
7. greater transparency and accountability of the central bank and more effective communication with the public and financial markets, including the presentation of various aspects related to the inflation targeting approach and the preparatory steps for its adoption; 
8. better insight into macroeconomic behavior patterns and economic mechanisms in order to identify and enhance the effectiveness of monetary policy transmission channels.

The NBR's efforts to set up the organizational and technical framework required for implementing the new monetary policy strategy spanned 16 months, with technical assistance from the International Monetary Fund and the Czech National Bank.