For the National Bank of Moldova (NBM), it is important for its decisions to be understood correctly. “The business entities and persons should realize the goal of the NBM’s decisions, how the financial system and the financial market work,” Natan Garștea, adviser to the National Bank governor, stated in the third edition of the financial education event “Money Road” that is organized by the NBM in concert with the Independent Think Tank “Expert-Grup”, IPN reports.
“At school they study math, but do not study budget management. We daily have financial interactions. We all have to understand in time how these interactions work. The management of personal finances (income and costs) is an important element. The ideal situation is when we manage to make savings,” stated Natan Garștea. “If a large number of people borrow money and will be unable to repay the loans, we will experience a crisis in the banking system. The financial decisions of each of us, if they are gathered together, influence the country’s economy in general. For the BNM, it is important that each person should take correct financial decisions that would lead to lower risks nationwide”.
It is also important for the citizens to understand the Bank’s monetary policy decisions that influence inflation, such as those related to the exchange rate, increasing or diminution of the mandatory reserve assets of banks. By such decisions, banks’ rates on loans and deposits are determined. If the citizens realize these decisions, they will be able to better adjust in the financial environment.
In the event, Corneliu Crețu, head of the NBM’s Cash Operations Division, explained how the money is put into circulation and what safety elements the banknotes have. “The shabby banknotes are chopped by the NBM. These notes can be exchanged at the NBM for bills with the same face value without paying any commission,” said Corneliu Crețu.
The target group of the seminar was the persons who want to know more about finances and to take correct financial decisions. The organizers also presented and explained such concepts as savings, financial instruments and what a person should know to make an investment or to take out a loan.
The event was held to coincide with World Savings Day that is celebrated on the last Friday in October.
The journey on the “Money Road” was staged within the financial education project “Give sense to money” whose goal is to increase the level of understanding of the main concepts and financial products among young people, to support them in the proper management of their income and substantiation of sound financial decision-making.
