From January 2025, Moldova will use the euro instead of the dollar as the base currency to establish the official exchange rate of the Moldovan leu, the head of the National Bank of the Republic (NBM), Anca Dragu, said on the public television channel Moldova-1.
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“From January 2, we are switching to the euro as the base currency for establishing the official exchange rate of the Moldovan leu and NBM reserves. This will bring significant economic benefits to the country. The expected savings on exchange transactions may exceed 10 million euros. This is due to the increase in the liquidity of the euro in the domestic market and by reducing the difference between buying and selling rates by about 7-10 bani (one lei is 100 bani). This will make foreign exchange transactions more profitable for the population and business,” she said.
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The head of the National Bank clarified that the decision to switch to the euro as the main reserve currency is related to the country’s trade and foreign exchange flows. According to her, about 60-70% of Moldova’s exchanges and trade transactions take place with the European Union, so the NBM must adapt reserves and foreign exchange interventions to these realities.
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Moldova has been experiencing another wave of economic crisis for several years. In 2022, inflation in the country reached a record 30.2%. Due to rising energy prices, gas tariffs increased almost sevenfold in 2022, and electricity tariffs almost fourfold. In 2023, inflation in Moldova was 13.4%. Due to rising prices for energy resources, the population’s debts for utility services are growing. Against the background of rising prices for energy resources, as well as rising inflation, anti-government protests are spontaneously taking place in the country.
