The governor of the National Bank of Moldova Anca Dragu said that controlling inflation and price increases is the main objective of the central bank. “We look at the economic activity also through the angle of the legal framework and the National Bank’s mandate. Surely, we must have an economy without imbalances, while inflation is an internal macroeconomic imbalance,” Anca Dragu noted in the podcast “Give sense to money”, IPN reports.
“We have to look at the economy in broad terms and then, yes, prices have to be stable to ensure confidence in the economy. And then, yes, we look at these components of the economy, and I was talking earlier about the trade deficit. Yes, we need to have more direct investment, investments that increase domestic supply. This trade imbalance means that what Moldova produces is not enough,” the governor stated.
“We also know that what Moldova exports is, as I said at the beginning, in the Low Tech – Mid Tech area, and, therefore, we have an imbalance in terms of trade. So, we need companies to ensure production and export, in this area of tradables, but these forms invest if there is no inflationary environment, if interest rates are at an acceptable level. Or, with an interest rate of 20-30% on a loan, no one will take that loan. What to do? What economic activity generates such a high yield that it allows to pay such high interest on the loan? So, controlling prices, inflation in a forward-looking economic context is the main mandate of a central bank. And I think this is what we should point out: we must understand the direction that Moldova’s economy should follow. So, with investments in tradables, with more solid investments,” explained the governor.
According to her, in Moldova, as in many other states, the problem of demography and the exodus of workforce, talented and performing young people persist. “I want and hope to bring to the National Bank of Moldova talented young Moldovans who work around the world and who will come, return home and contribute with what the accumulated knowledge and experience to Moldova’s economic growth. So, in short, the bank fulfils its duty and ensures the stability of prices, but also looks at the banking sector so that this is prepared to better finance the real economy and I hope we will have time to discuss more how to better finance the real economy,” said Anca Dragu.
