The diminution of exports and the decline in the volume of remittances are the main reasons for the recent devaluation of the national currency. Such conclusions were formulated by two economic experts in a talk show on RTR Moldova channel, IPN reports.
Ion Tornea, economic expert of the Institute for Development and Social Initiatives “Viitorul”, said the remittances have considerably decreased in volume over the last few months and this is explained by the economic situation in Russia and by the expulsion of the Moldovans working there. Also, Russia’s embargoes on a large part of the Moldovan agricultural products and the fact that our producers haven’t yet penetrated new markets negatively affected the relationship between the leu and the U.S. dollar.
“There are now all the economic preconditions for the devaluation of the leu. The volume of remittances decreased by US$38 million and this is a lot. There is also the psychological factor, when the people lose confidence in the national currency and make savings in foreign currency. In June – July 2014, there weren’t preconditions for the devaluation of the leu. There were speculations on the banking market then, but, regretfully, the central bank didn’t intervene,” stated the expert.
The director of the Market Economy Institute Roman Chirca also considers that the Moldovan leu devaluated following the decline in remittances and exports. He warned that a new wave of price rises is approaching, which will affect primarily the energy sector.
“It will be the imported products that will grow dearer the first. The electric power distributor “Gaz Union Fenosa” already announced possible rises. The prices of medicines will also increase. The rise in the prices of energy resources will directly lead to an increase in the prices of national products. To remedy the situation at least slightly, the prices of gas imported from Russia should be renegotiated given that the gas prices at world level decreased,” said Roman Chirca.
