The National Bank governor Dorin Dragutanu said the leu depreciated because Moldova’s economy was struck by external shocks for which it wasn’t prepared. He provided explanations in the talk show “Moldova live” on the public TV channel “Moldova 1”, IPN reports.

According to the governor, the economic situation in Russia and the bans imposed by this country on the import of Moldovan agricultural products were the key factors that determined the leu’s depreciation. “The Russian ruble fell dramatically so that the Moldovans working in Russia send fewer dollars or euros home than before. Thus, remittances decreased. Another cause that led to the depreciation of the leu is the decline in exports, influenced mainly by the bans imposed by Russia. There is also one more factor that is probably less important. In a state of panic, more people started to buy euros and dollars. Another cause is the political situation. Some businessmen, when they see that there is no stability, take their capital out of the country in order to protect it,” he stated.

The governor refused to make forecasts about the stability of the Moldovan leu, but said that a lot of work is needed for Moldova’s economy to cope with the new conditions. “The volume of exports must be increased so as to satisfy the importers’ demand of currency. Foreign investments should be attracted. Many reforms are needed to remedy the situation. I think that with the implementation of the Association Agreement with the EU, the situation will change,” he said.

Dorin Dragutanu also said that the given situation couldn’t have been anticipated.  “Nobody could anticipate the ‘maidan’ and the war in Ukraine, the sudden decrease in oil prices and the penalties imposed on Russia by the West. However, the central bank has enough foreign exchange reserves to prevent the free depreciation of the leu,” he noted.