The lowest level of foreign investment in the last 20 years was recorded in 2016. But the Republic of Moldova can attract foreign investment through its position between two large integrationist bodies, between two free trade areas as this is rather attractive for foreign investors to create enterprises on the country’s territory, said invitees of the program “Key issue” produced by NTV Moldova channel, IPN reports.
“The possibility of trading with the European Union duty-free is the most important thing for the Eastern partners, while the possibility of selling products on the Eastern market duty-free is very important for the European partners. This is the main advantage,” said Socialist MP Vladimir Golovatiuc.
As to the appreciation of the Moldovan leu against international currencies, the politician said the National Bank of Moldova this year bought less foreign currency compared with last year. An excess of currency was thus witnessed and the leu appreciated. “The question arises as to why the National Bank does not buy currency. Because the level of inflation exceeded all limits. Last December, the inflation was of 2.4%, while this May of 7.4%. The National Bank aims to maintain the inflation between 3.5 and 6.5% and we have 7.4%. This is a threat,” stated the MP.
According to him, the developments depend on how long the National Bank of Moldova continues to reduce the purchases of foreign currency to a minimum.
Economic expert Veaceslav Ionita said the National Bank found itself between the hammer and sickle. The foreign currency that reaches Moldova cannot be invested in economy because the latter is nonfunctional. “The National Bank has to purchase foreign currency in order not to destroy the currency market. Buying foreign currency, it introduces lei into the economy, but this money cannot be invested because the economy does not work. Therefore, the central bank has to keep these lei in commercial banks and to pay money for this,” he stated.
According to the expert, the stronger leu cases damage of 250 million lei a month to Moldovan exporters. Furthermore, the incomes of the citizens who live on remittances decreased by about 10%.
