Finances

NBM ALLOWED MOLDOVAN LEU RATE STRENGTHEN AGAINST USD AND EUR

09 july, 2019

With an almost tacit consent of the National Bank of Moldova, the exchange rate of the Moldovan leu easily went beyond the figures of MDL18 : US$1 and MDL20 : Euro1.

Currency dealers said to Infotag on Monday that a seasonal movement of the national currency downward is registered in the currency market in recent days.

“Without a more active intervention of NBM dealers in the situation, the national currency strengthening is getting quite a resolute and sustainable character, as the very market participants do not satisfy all the applications for selling US dollars and Euros, thus the exchange rate immediately react to this. This is playing into the hands of the Moldovan leu, which has considerably strengthened”, one of dealers said.

He says that such a currency trend is profitable not only to the Moldovan leu, but also to the authorities, interested that the national currency exchange rate to be stable, which guarantees certain strength to the Moldovan leu.

“Everything looks quite logical: when the political situation in the country was unstable, the leu was depreciating, but once the political situation stabilized, the leu is winning back its positions against the US dollar and the Euro”, said the agency interviewee, adding that many in the country are happy about the Moldovan leu strengthening.

Forecasting the development of the situation in the currency market, dealers say that much will depend on the regulator’s position.

“We can definitely state that if the NBM is not buying currency in summer, the Moldovan leu rate will keep strengthening. Such a situation will preserve straight till September 1”, professional capital market participants said.

The Infotag interviewees pointed at a considerable decline in demand for currency from economic agents, supposing that the demand for US dollars and Euros will not grow till autumn.

“The demand for currency until autumn is possible only from the side of energy resource operators, but it can easily be satisfied by banks, whose actions are carefully supervised by the regulator, which is ready to intervene in the situation at any moment”, the dealer said.

Infotag’s dossier: As of Tuesday, July 9, the NBM established the following official Moldovan leu exchange rate: MDL17.8900 : US$1 and MDL20.0682 : Euro1, slightly strengthening the national currency rate against the Euro-Dollar.

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