Democrats worried about rising leu

The Democratic Party (PDM) has expressed concern about the situation on the currency market in Moldova. While earlier the trend was for the national currency to grow stronger against the American dollar, last week the leu has started appreciating against the euro as well, Info-Prim Neo reports. At a news conference on Monday, PDM president Dumitru Diacov has stated that a sudden appreciation like this hasn't been seen in any of the neighbor countries, Ukraine, Romania or Russia. According to Diacov, these speculations on the currency market are employed by the government to handle the state's serious problems, like the gas debt, at the expense of ordinary people, “at the expense of those who work abroad and go to the exchange desk to exchange a miserable dollar”. Because of the artificial strengthening of the leu, the domestic producers, the exporters have already reached the verge of bankruptcy, Diacov declared. “Prices are rising, fees are increasing, but the exchange rate is falling. It is something that will impoverish people and take down producers”, Diacov concluded. The PDM leader says that the National Bank of Moldova (NBM) is to blame for this situating, because it is “absolutely subordinated to the Government, which, in turn, wants to spend some extra money”. “We regret that NBM governor Leonid Talmaci, who had once the courage to show force of character, is now obedient and subordinated to the government and has created this dangerous situation for the national economy”, said Diacov. The PDM faction in the Parliament invited the governor more than once to appear before the legislature for explanations on the existing situation, but such proposals have never been backed by the parliamentary majority, said Diacov, adding that in September the PDM will broach the personal responsibility of the governor for the created situation. PDM vice president Oleg Serebrian observed that, as a rule, the national currency in a country that encounters unexpected problems is falling. “Yet, an extraordinary thing is happening in Moldova: on the one hand, the economy faces a host of additional problems following floods, and on the other, there is this appreciation of the leu against all the key currencies”, said Oleg Serebrian, remarking that what was also strange was that, despite the depreciation of the key currencies, the prices of imported goods were rising. The exchange rate recommended by the NBM for euro on August 4 was 15.1026 lei, but at exchange descks it sells for around 14.90 lei.