Dorin Dragutanu: Exchange rates are determined by market only

In the last 8 months, the National Bank of Moldova (NBM) has practically never intervened into the currency market and in the few situations when it did, amounts were incomparably smaller than in 2007-2008, stated NBM Governor Dorin Dragutanu at a press conference. Commenting on the recent fluctuations in the exchange rate of the national currency, the Governor said the rates are determined only by the market, Info-Prim Neo reports. “The market is a self-regulating organism that finds its equilibrium on its own”, said Dragutanu. “Some minor fluctuations are registered on a daily basis. If these happen to be excessive or if the market needs cash, either lei or foreign currency, we are authorized to intervene and we will do it firmly. But the NBM prefers to see the exchange rates on the domestic market determined by supply and demand”. According to him, the market at present is in a state of equilibrium. The larger supply of foreign currency is seasonal and is due to migrant workers coming home for vacation and bringing foreign money with them. “This happens each year and we see no threat in it”, assured the NBM Governor.