The moderate depreciation of the national currency is in accordance with the policy of direct targeting of inflation. This contributes to the attenuation of the inflationist pressure by stimulating internal demand and exports, said the governor of the National Bank of Moldova (BNM) Dorin Dragutanu. According to him, the situation on the foreign currency market is monitored by the Bank’s experts and it does not cause concerns, IPN reports.
“The BNM targets the inflation, while the exchange rate is set by the market. When the supply of foreign currency is excessive persistently, the BNM cautiously intervenes and purchases foreign currency from the market in order to supplement the foreign exchange reserves,” the governor told a news conference.
Asked when the exchange rate of almost 17 lei against the euro will decrease, the governor said that everything depends on the dollar – euro relation and the market demand. He avoided saying if the rate will achieve 17.5 lei as economic publications anticipated. “You should not worry. We will intervene, if necessary, without endangering the target inflation rate for a medium-term,” he stated.
The BNM’s target inflation is 5% plus-minus 1.5 percentage points.
