Moldovan Leu appreciated by another 23 bani against the American Dollar during this week and reached the level of 10.7743 MDL for one USD, at the end of the period. Cumulatively, since early 2008, the national currency increased by 4.8% against the American Dollar.

The MDL appreciation against the Dollar follows both the local peculiarities and the factors of external influence, according to the officials from the National Bank of Moldova (BNM).

The phenomenon of the national currency appreciation became a global one, and the volatility of the international currency market conditioned, in the region, a wave of appreciations of the national currencies reported to the US Dollar, BNM says. Since early 2008, the euro rate of exchange soared by 6.26% from 1.4704 to the historical maximum of 1.5624 for one USD.

At the same time, the BNM representatives say, in parallel with the external factors, the positive trend of the Leu was also influenced by the situation on the internal market and, namely, by the significant increase of the net offer of foreign currency from the physical persons. In 2007, it increased by 43.5% against 2006, up to 1 billion 712, 3 million USD. Another factor was the 3.2 fold increase, in the same period, up to 240, 7 million USD, of the net flux of direct investments, of the portfolio and credits contracted from the affiliated people. The ascent of the Leu also followed the 2.6 fold increase up to 287 million USD of the net flux of the private external credits, grants and technical assistance.

In the same context, BNM stresses the increase of the remittances of the physical persons from abroad. In January-February 2008, this indicator soared 1.9 fold against the same period in 2007, according to the bank.

Permanent Representative of International Monetary Fund Johan Mathisen has the same opinion. One of the causes the Leu appreciated, is the increase of the remittances and of the direct foreign investments to Moldova, as well as of the means offered by the international financial institutions – the European Bank for Reconstruction and Development, the European Bank of Investments and others, he has recently said.

If formerly a great part of the currency incomings were used to pay the imports, now this money remain in Moldova and are re-directed in capital investments, Mathisen said.

If the enumerated processes continue, we must expect a continuous appreciation of the Leu in real terms, even if the Dollar will cease to depreciate on the international markets, the IMF representative added. Along with the increase of the production investments, the productivity in economy will also soar, thus, within a short period, its capacity of absorbing the appreciation of the national currency will also increase, Johan Mathisen stressed.  // BASA-Press



Publication date: 16 March 2008   

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