Governor of national bank of Moldova explains tendency of MDL appreciating

Chisinau, 10 August /MOLDPRES/ – The supply of foreign currency by individuals continues to exceed the demand from economic agents, which explains largely appreciation of national currency (MDL). Governor of the National Bank of Moldova (BNM), Sergiu Cioclea, has made this statement in an interview.

"The foreign exchange inflows to individuals reached $1.2 billion in 2017 and rose by 16 per cent in the first half of 2018," specified Cioclea.

The same is true of economic experts, which affirms that one of the factors determining appreciation of MDL in relation to the European single currency (ESC) is the excess of currency on market. "Starting January 2016, MDL has appreciated continuously against USD and ESC. The reason is excess of currency on market. The population sold $650 million more than economic agents needed," states economic expert, Veaceslav Ionita.

According to Ionita, another factor driving euro cheapening is the international one. Within recent 10 days, euro has depreciated against the US dollar on international markets by 2.2 per cent.

There is added the seasonal factor to all this. "The foreign currency depreciates in Moldova more or less three times a year: winter holidays, Easter and before 01 September. The Moldovans come home and the country meets them with a low foreign exchange rate. If we take into account inflation, the ones in Italy when they come home now have to change €125, compared to €100 two years ago," said Ionita.

According to expert, until elections, MDL will have a stable rate with a slight appreciation against USD and ESC.

(Reporter N. Sandu, editor L. Alcaza)