Net demand for foreign currency exceeds demand in June despite decline in Moldova

Chisinau, 22 July /MOLDPRES/ – The net demand for foreign currency coverage of net foreign exchange was 103.9 per cent in June, compared to 84.6 per cent in previous month, according to data from the National Bank of Moldova (BNM).

The offer exceeded demand despite a decline in June in the net foreign exchange supply of individuals by $29.4 mln compared to previous month, amid a stronger decline in the net demand of foreign currency by economic agents by $74.8 mln. Under these circumstances, the BNM has intervened through net foreign exchange purchases of $14.0 mln (including €7.0 mln).

According to the BNM's information and media communication service, in June 2019, the Moldovan leu (MDL) depreciated, in average values, by 1.2 per cent compared to USD, to MDL 18.1714, compared to MDL 17.9549 for $1 in May.

Within the structure of the net foreign exchange supply from individuals, the largest share continued to be the single European currency (EUR) (77.6 per cent).

The BNM data for Ist half of 2019 reveal sensitive oscillations in foreign exchange market in cash. Thus, in the first quarter of 2019, the net foreign exchange supply of individuals was $361.6 mln, down $100 mln against similar period of 2018, while demand increased by $111 mln, up to $522.7 mln. As a result, coverage in the first three months of 2019 constituted 69.2 per cent. However, the trend reversed in March and April, when the coverage exceeded 120 per cent, followed by a decline in May and a further increase in June.