National Bank of Moldova explains leu's appreciation against dollar, euro by excess of currency on market

Chisinau, 15 May /MOLDPRES/ - The National Bank of Moldova (BNM) explains the Moldovan leu’s appreciation against the U.S. dollar and euro by an excess of currency on market, in conditions of higher supply of currency on behalf of residents and exporters, which exceeds the demand and needs of importers.    

“On 15 May 2017, the Moldovan leu’s exchange rate recorded a growth of about 6.54 per cent against the U.S. dollar and 2.78 per cent against the euro, in comparison with the values registered in the beginning of this year,” reads a press release by BNM, issued today.   

The Central Bank said that, during the first three months of 2017, the money transfers to private people had increased by about 12.65 per cent (251.77 million dollars) against the similar period of the last year. Just as in 2016, the pace of the exports’ increase exceeds the one of imports. Against a background of exports’ geographical re-orientation to EU and their currency structure, an increase in the euro’s share in the foreign trade is noticed. Thus, BNM said that the Moldovan leu’s appreciation against the euro was smaller against the dollar, which marked a descending trend also against other regional currencies, such as the Romanian leu and the Russian rouble.   

Given that excessive liquidity is registered in the banking sector, the international reserves hit a high level, the BNM’s monetary policy, for the time being, does not provide for full purchasing of the excess of currency on the domestic market. The National Bank informs that it will further focus on its fundamental goal - stability of domestic prices, according to the inflation targeting strategy. At the same time, the central bank permanently monitors the evolution of the domestic currency market and intervenes if necessary, in order not to allow an excessive volatility of the exchange rate and its speculative evolution.    

(Reporter V. Bercu, editor M. Jantovan)