The volume of remittances sent to Moldova from abroad in the first four months of this year has decreased. As the cash transfers are directly connected with Moldova’s currency market, the supply of foreign currency will be reduced and pressure will be again exerted on the national currency, considers the president of the Bankers League Dumitru Ursu. In an interview for Radio Free Europe, he said that the National Bank will encounter difficulties in supplementing its foreign exchange reserves for the same reasons, IPN reports.

According to Dumitru Ursu, two thirds of the remittances come from Eastern Europe, first of all from Russia, and only one third comes from the EU member states, but the origin of this money does not really matter. “Ultimately, both the Russian ruble and the euro are attractive currencies for Moldova’s economy and for the population. The Moldovan government also anticipated that the remittances will continue to decrease and we must think how to fill this void in the country’s foreign exchange reserves,” he stated.

Dumitru Ursu noted there are a number of causes for the decline in the remittances that come from abroad. “We should not forget that there is economic recession in the EU too and many people in Europe probably do not have a job now. What should we do? We must indeed develop the real economy. Only this sector can ensure predictability as to the money for the country’s foreign exchange reserves,” he stated.

Asked how Moldova’s real economy can be developed, the president of the Bankers League said competitiveness must be enhanced and possibilities must be found to develop the  light industry, the car making industry and the construction industry.

Dumitru Ursu also said the absence of relations with international financial institutions is a big problem and a number of areas will be affected, including the state budget as the grants of international organizations represent a part of the state budget incomes.