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While Bucharest remains Romania's capital and largest city, Sibiu, in southern Transylvania, was coined the European Capital of Culture in 2007 thanks to its old Germanic charm, colorful squares, stunning medieval architecture, and plentiful culture and music festivals. Despite rising economic development and Romania's recent admission to the European Union, Sibiu offers plenty of bang for the America buck. The national currency is the leu, of which one U.S. dollar buys almost three. Dinner for two with multiple courses and drinks at a good restaurant in the popular Small Square will only cost about $35 -- an affordable opportunity to sample regional specialties such as a clear sour soup called ciorba and tuica, a local plum brandy. Guesthouses in the main square start around $31 a night while hostels start at just $14. Regional products such as wools, leathers, fur, wine and artisan food products are great buys for American visitors. Visit Sibiu's unique museums, hike the nearby Fagaras or Cindrel Mountains, or simply stroll the old medieval town, which is the main attraction in and of itself.