There are no prerequisites for crisis situations in foreign exchange market - National Bank of Moldova says

Chisinau, 17 April /MOLDPRES/- The National Bank of Moldova (BNM) announces that, despite the relative depreciation of the Moldovan leu against the euro, "there are no prerequisites for crisis situations in the foreign exchange market, with a slight gap between demand and supply of foreign currency." The main operators in the market show calm and act in normal regime, BNM also states.

BNM notes that lately, in the external financial markets, the euro recorded a trend of appreciation against the US dollar amid favorable developments in the euro area macroeconomic indicators. Accordingly, in the current month, the single European currency rose from 1.1218 euros per one US dollar to 1.1300 euros, and this dynamics explains the depreciation of the Moldovan leu against the euro. The Central Bank describes the depreciation of the Moldovan leu against the US dollar (about 48 bani) on the domestic currency market as a "moderate" one.

The National Bank reiterates it does not predict or target the dynamics of MDL, its primary goal is to ensure and maintain price stability. It will continue to monitor the evolution of domestic currency market as well. The National Bank has enough leverage to influence the currency market, adequate foreign exchange reserves (4.7 months of import), to ensure a prompt response, if necessary.

According to central bank data, the Moldovan leu depreciated in April by 3 percent against the US dollar, from 17.3104 at the end of March to 17.8317 on April 17, and compared with the euro depreciated by 3.7 percent, from 19.4318 at the end of March to 20.1506 on April 17.

According to the director of the Institute of Market Economy, Roman Chircă, depreciation of the Moldovan leu in the last month is a "fluctuation slightly more alert than usual. There are certain prerequisites such as the increased demand for currency, but also the political uncertainty in the Republic of Moldova. "

Program director of the Expert-Grup centre Sergiu Gaibu said "the BNM currently has enough leverage to intervene, but it is important the new government to take measures to develop production and exports and slowdown populist policies”.

The Ministry of Economy forecasts 17.56 lei per dollar at the end of 2019, 18.32 in 2020 and 18.54 lei per dollar by the end of 2021.