NBM PREVENTS MOLDOVAN LEU FROM STRENGTHENING AGAINST DOLLAR - DEALERS

The actions of the National Bank of Moldova dealers on the currency market prevent the Moldovan leu from strengthening against the US dollar, despite the slight weakening of the American currency against the Euro.

“By means of interventions and buying of currency surpluses on the market, the regulator achieves two goals – preserves the national currency exchange rate relatively stable and replenishes the currency reserve. Due to this, the currency reserve will soon break a new record, crossing the threshold of US$3 million, which has never happened in Moldova before”, said a bank dealer to Infotag.

Other agency interviewees pointed at the fact that the marked did not support a small wave of Moldovan leu strengthening against the Euro and the US dollar.

“The NBM actions did not allow this trend to develop on the market. The bank is buying currency in moderate volumes (these sums are much smaller than millions), replenishing its reserve”, say professional market participants.

They point at the fact that in autumn 2018 there is no traditional reduction of the proposal on the cash currency market.

“The decline preserved approximately until September 15, while after that it stopped and currently is staying at the same level”, dealers say.

Forecasting the situation on the currency market in short-term perspective, many of its participants say that nothing special will happen on the market, because the NBM is firmly and safely controlling everything.

“By means of small currency procurement, the regulator was mitigating any sharp movements of the national currency, preserving the situation stable and predictable. Besides, the NBM is steadily increasing its currency reserve, which serves for it as a kind of airbag for any contingencies”, dealers say.

Asked about the moods and the behavior of importers and exporters, the dealers pointed at a slight recovery in their actions, saying that there is a slight progress in the real sector of economy in the field of demand for bank financial resources. This is confirmed by the August statistics, which registered a stop in credit portfolio growth in the banking system.

Infotag’s dossier: For Monday, September 24, the NBM established an official exchange rate of MDL16.8255 : US$1 and MDL19.7926 : Euro1, slightly strengthening the correlation of the US dollar and the Euro against the Moldovan leu.