Economic analyst Viorel Chivriga considers the speculative trends on the currency market must be managed as there are commercial institutions that gain benefits from the fluctuation of the exchange rate. The expert commented for IPN on the developments on the currency market, especially the considerable appreciation of the US dollar, which passed the level of 16 lei.
“The instability of the exchange rate is a trouble for any state. We must not forget that we are a country dependent on imports. A large part of the industrial and energy products reach us at a higher price. The rise in prices is already visible. Some of the medicines are sold with a large margin as these are in demand, especially with people on very low incomes. Even if Moldova is an agrarian country, we import many agrifood products that are in demand,” stated Viorel Chivriga, noting that the prices will grow in this sector too.
The expert anticipates that the volume of remittances will continue to decrease. “The Moldovans from Russia will send less money home and the budgets of the households and consumption will be affected. We also have companies that signed contracts with foreign partners. The payment conditions do not allow those from Moldova to be flexible and the losses that can be sustained here will seriously affect the companies involved in foreign trade,” he stated. The salaries of budget-funded workers lag behind the processes on the currency market. The prices go up, but the salaries remain the same, while the purchasing power decreases and poverty grows.
The expert said the foreign trade can be facilitated to a certain extent, but there is a long way from theory to practice. The producers often import raw material and this leads to higher production costs and lower competitiveness on the part of the national products. These products are sold with difficulty and the incomes can be much lower than projected.
According to Viorel Chivriga, the authorities have obligations that they must honor in order to ensure stability on the market. The speculative trends should be excluded as they can generate panic. But not everything depends on the actions that can be taken in Moldova. There is a link with the developments on the Russian market and with the situation on the international market. The relations between the euro and dollar, for instance, cannot be managed from the country.
