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Citizens can invest in three basic financial instruments, NBM adviser


https://www.ipn.md/en/citizens-can-invest-in-three-basic-financial-instruments-nbm-adviser-7966_1097896.html

The citizens can invest in three main financial instruments, namely bank deposits, state securities, and new instruments of joint stock companies or specialized institutions, like bank or municipal bonds, said adviser of the National Bank of Moldova (NBM) Alexandru Savva. However, he noted that these instruments are not sufficient in number and are not varied enough in terms of possibilities. More or less, they cover relatively small areas, but the attempts to go beyond these limits are appreciable, IPN reports.

“The state securities are the instrument by which the state attracts a loan and interest is paid to those who invest in SSs. If the state borrows 1 million, the person who lend the money, a private individual or a legal entity, will get back that 1 million plus a X% interest rate provided by the state on maturity,” Alexandru Savva stated in a podcast of the series “Give Sense to Money” which was presented by the NBM.

The SSs are an investment instrument for citizens and enterprises. “I would say that the most interesting part in this instrument is that it is a very safe one. It is considered practically the safest one. If you invested in this instrument, you will definitely recover the investment, unlike other instruments. Secondly, it should be tied to your banker or broker and it becomes interesting only this way. Your banker or broker, if you are interested in financial investments, should manage the money you own. It is important at a certain moment to decide: my bank is e X, my broker is Y. I gave you my investment resources and I can increase them monthly, but I simply need to make this investment,” explained Alexandru Savva.

The adviser referred also to investments in crytocurrency, which he does not recommend. “I presume those who make such an investment do it only in order to massively promote this instrument as this instrument has absolutely nothing behind it. In general, all the financial instruments, I refer to a wide range – starting from money, surely, and ending with the instruments I mentioned above – have something behind them which supports their value. The form of support can be different. Sometimes it can be the trust. Some states issue money based on trust, while others based on foreign exchange reserves or gold reserves and so on,” said Alexandru Savva.

Asked about the tendency to invest in gold, the adviser said this is an interesting option. “At a particular stage of development of the capital market, even in the Republic of Moldova if there is growth, the possibility of investing in particular instruments based on gold should exist. Surly, this gold will not be purchased physically, in the bag. An instrument that is reflected in gold deposited at a bank, for example, will be bought. This is an ordinary investment that proved its efficiency during hundreds and thousands of years,” stated the NBM official.