Moldova: starting January 2, 2025, the EUR will become the base currency for setting the official exchange rate of the Moldovan leu (MDL) instead of the US dollar (USD) – the NBM
The National Bank of Moldova (NBM) announced this, noting that this decision reflects the orientation of the Moldovan economy to the EU market, which plays a dominant role in the trade and financial structure of the country. According to the NBM, this change will reduce the fluctuations of the Moldovan leu's exchange rate against the EUR, as well as the difference between the EUR buying and selling rates, which will benefit the economy and will help reduce currency exchange costs. It is emphasized that this transition is aimed at adjusting to the economic realities in a context in which the European Union is Moldova's most important trading partner and the main source of remittances and foreign direct investments. Official data show that more than 60% of commercial transactions and 70% of remittances are in euros, and this currency is the most popular on the local foreign exchange market. The change will promote exchange rate stability, which will benefit the economy. Similarly, the use of the EUR as a base currency is a methodological decision designed to bring Moldova's financial structures in line with those of the European Union, without affecting the NBM's monetary policy. Citizens and economic agents will not be directly affected, as the transition is of a technical nature and its objective is to maintain the macroeconomic balance and compliance with European standards. Citizens will benefit from the stability of the EUR/MDL exchange rate, lower exchange rate risk and lower transaction costs, which is an important aspect for people who receive remittances or have loans in EUR. As for the business environment, lower exchange rate volatility will facilitate financial planning and reduce risks in commercial transactions with EU partners. The NBM emphasizes that the banking sector and economic agents will also benefit from a more liquid EUR/MDL foreign exchange market and lower transaction costs. The NBM will publish detailed information on its official website and other communication platforms; will provide answers to frequently asked questions and will hold public consultations to ensure transparency and clarity of the process. // 15.11.2024 - InfoMarket.
