MP of the Party “Dignity and Truth Platform” Igor Munteanu said President Igor Dodon’s proposal to withdraw US$ 1 billion from the state reserves would lead to an inflation rate of 25% that would affect the poorest people in the Republic of Moldova. The important international institutions would not welcome such an initiative, IPN reports.
“Economic questions should be put here, why should you use US$ 1 billion if, for example, the result of the related transactions will be an exponential growth of inflation in the county? In this case, you push the economy towards a collapse, towards a vicious circle from which the people will have to escape and leave the country,” the MP stated in the program “Secrets of the Power”’ on Jurnal TV channel.
Furthermore, in an electoral year Moldova cannot make sudden moves. A particular pace and an appropriate policy are needed so that the people do not get scare. “In an electoral year, businesspeople do not invest. The openness to the market diminishes, no new jobs are created. The methodology of the loans coming from Russia already conveys negative signals to the EU and the Weston partners,” said Igor Munteanu.
Economic expert Sergiu Tofilat noted the development partners do not approve of such initiatives and statements. The National Bank should have a particular amount of reserves so as to be able to intervene in the market to balance the inflation rate, the exchange rate. “Without this instrument, without such reserves, the central bank cannot sufficiently intervene and the situation can degenerate,” he stated, adding that the President’s prerogatives have nothing to do with the management of the economy or the financial-banking system.
At the end of last December, President Igor Dodon said that Moldova’s foreign exchange reserves totaled US$ 3 billion and proposed taking US$ 1 million of these for investing it in the economy.
