​THERE ARE NO REAL PREREQUISITES FOR MOLDOVAN LEU DEPRECIATION IN NOVEMBER – CURRENCY DEALERS

November is not the month when the national currency exchange rate may considerably weaken the Moldovan leu, say currency dealer.

“Private foreign exchange offices caused a small agitation, trying to signal that due to political crisis after the Government dismissal the Moldovan leu will start losing its positions against the Euro and the US Government”, said a market dealer to Infotag.

According to him, the previous three days showed that the demand for currency from legal persons slightly grew, but such a trend will hardly be supported by the rest of market participants.

“Most likely, the emerging slight depreciation of the Moldovan leu will just die out and the national currency exchange rate will again be strengthening, overcoming the threshold of MDL17.50 : US$1. The movement towards weakening is the desire of exchange offices to give to the exchange rate a more tangible movement, which is profitable for the currency dealers regardless of the currency trend movement – downwards or upwards”, say the agency interviewees.

Dealers suppose that the currency trend over the three recent days will preserve maximum till the end of the week, as it will not be supported by the market.

“These days, all the exchange rate movements are happening without the intervention of National Bank of Moldova (NBM) dealers. To some extent, this may mean that the regulator sees nothing that would threaten the stability of the national currency exchange rate”, say professional market participants, positively assessing the fact that the NBM by means of its policy helped the average annual Moldovan leu rate to be close to the figure, implied in the 2019 State Budget.

Infotag’s dossier: For Thursday, November 14, the NBM established the following official exchange rates: MDL17.5159 : US$1 and MDL19.28 : Euro1, weakening the Moldovan leu against the US dollar and the single European currency.