Moldovan currency continues to depreciate

11:28 | 20.01.2015 Category: Economic

Chisinau, 20 January /MOLDPRES/ - The National Bank of Moldova (BNM) has established an exchange rate of 17.0778 lei for 1 dollar for 20 January, against the one of 16.8675 lei for one dollar on 19 January. The national currency again exceeded the psychological threshold, against an unfriendly regional background and appreciation of the dollar, following an unexpected growth of the United States' economy . The Moldovan currency has depreciated by over 9.3 per cent in nominal terms since early 2015.

A new psychological threshold was exceeded as early as one week after the exchange rate got over 16 lei per one dollar on 13 January. One year ago, on 20 January 2014, the official exchange rate was of 13.2143 lei for 1 dollar, 12.1809 lei on the same date in 2013 and of 11.9171 lei in 2012.

The Moldovan currency’s depreciation sped up in 2015, following a 19.6-per cent drop against the dollar in 2014.

The Moldovan leu continues to depreciate against the dollar, in conditions of the American currency's appreciates, depreciation of the currencies of Russia and Ukraine, two of the most important trade partners of Moldova, and regional crisis, as well as the decrease in exports and remittances. The net offer of foreign currency has significantly diminished, which puts pressure on the foreign exchange market.

BNM increased the basic rate from 3.5 per cent to 4.5 percent; afterwards to 6.5 percent at the end of 2014.

At present, it was necessary to sharpen the currency policy, in order to fight against inflation-related pressure exerted by a possible recession in the Euro zone and Russia, regulated prices and depreciation of the national currency. This way BNM explained the increase of the basic rate.

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