National Bank of Moldova explain leu's depreciation against euro by European currency's appreciation on external market

Chisinau, 18 September /MOLDPRES/ - The latest more significant depreciation of the national currency against the euro is explained by the latter's appreciation against the US dollar on external markets. Thus, on the last days, the euro has appreciated by almost 1.3  per cent against the dollar, according to a communique by the press service of the National Bank of Moldova (BNM). 

BNM specifies that the euro's appreciation took place "against the background of a decision by the Federal Open Market Committee (FOMC) to keep the monetary policy rate at the same level, given that, according to the Committee, the world economic and financial developments are becoming  more alarming, taking into consideration the slowing down of the economic growth on emerging markets, especially the one of China." 

Although the labour market from the USA is recording an improvement, according to FOMC, it is to early for one to draw conclusions as to the positive dynamic of this market. Respectively, the probability of an increase of the basic rate in the near future is lower, the press release also says. 

Since the beginning of this week, the national currency has depreciated from 21.7 lei on 14 September to 22.49 lei for one euro, announced by BNM for 18 September. The Moldovan leu lost ground against the US dollar too, with the official exchange rate going up from 19.2 to 19.8 lei for one dollar in the last five days. 

If a slow depreciation takes place, this is not a tragedy, the fluctuations of the exchange rate are more dangerous, an economist of the IDIS Viitorul institute, Sergiu Gaibu, said. He also said that "our economy is, on principle, weaker than the economies of the region, and no matter whether we want this or not, the depreciation is inevitable." 

More experts consider that, if Moldova reaches an agreement with the International Monetary Fund, the official exchange rate will not exceed the level of 22-23 lei for one dollar; otherwise, they do not exclude a rate of even 25 lei for one dollar by late 2015.

(Reporter V. Bercu, editor  L. Alcaza)