Foreign currency supply increases by 50 per cent in August amid demand slowing in Moldova

Chisinau, 22 September /MOLDPRES/ – The currency flow from individuals continues to grow amid a slowing increase in demand from firms. The National Bank of Moldova (BNM) announced today that the offer in August increased by $60 million or 39.9 per cent compared to July, while net demand for foreign currency was 29.6 per cent higher than also in July.

Against currency surplus, BNM conducted procurement interventions on the local interbank market in the amount of $94.4 million.  

The coverage of net demand for foreign currency by firms by net foreign currency from individuals in August reached the second highest level in 2016. Demand for foreign currency was covered at 159.5 per cent versus 147.7 per cent in July and 188 per cent in May. The population sold in August currency in the amount equivalent to $309.3 million over three times more than it procured.

In terms of excess of currency in August 2016, the national currency against the US dollar remained virtually unchanged from the end of July 2016 and the average rate has appreciated by 0.2 percent.

According to BNM in the structure of net foreign currency from individuals, the largest share still came back the single European currency/Euro (72.4 per cent), followed by the U.S. dollar (14.9 per cent) and Russian rouble (11.0 per cent).

(Reporter V. Bercu, editor L. Alcaza)