Leu is strengthening against the backdrop of purchases by the National Bank of Moldova of foreign currency surpluses on the market - Octavian Armasu
The President of the National Bank stated this while answering journalists' questions within the framework of the Economic Press Club. He noted that the recent strengthening of the leu is based on fundamental reasons. We are talking about the fact that the NBM intervenes in the foreign currency market almost every day and buys excess foreign currency. The President of the NBM explained that the market cannot absorb large amounts of the offered currency, and in order to avoid excessive volatility, the National Bank is forced to intervene and buy foreign currency for foreign currency reserves, and, as a result, the official reserve assets of the NBM reached a new record level. Octavian Armasu specified that such a situation with excess currency on the market was the result of several factors. One is that some energy payments are financed by external partners and payments have been deferred and not made as they were last year during the heating season, and therefore the demand for the currency has decreased. On the other hand, in a recession situation, the demand for foreign currency on the part of importers decreased. The combination of these factors has led to currency surpluses that put pressure on the leu to appreciate. “The NBM, by its monetary policy, wants to stimulate domestic demand in order to balance, among other things, the demand for foreign currency due to the revival of imports,” the head of the National Bank said. // 14.02.2023 — InfoMarket
