People prefer deposits in foreign currencies to national currency

The amount of term deposits in MDL contracted by commercial banks in August is this year’s lowest and totals to MDL 401.7 mln. Meanwhile the term deposits in foreign currencies reached their highest level and topped MDL 780.7 mln. The difference between these two indicators proves increasing distrust on behalf of the population in respects to the national currency’s stability and to the national economy as a whole. According to official data, term deposits in MDL dropped 41.4 mln in August, compared with the previous month. This decrease is due to the 48 mln (47.1%) shortage on behalf of legal persons’ term deposits, while term deposits belonging to natural persons increased slightly by 6.6 mln (1.9%). As a consequence, the share of term deposits belonging to natural persons increased from 77% in July to 86.6% in August, of the total amount of term deposits contracted in national currency. The average interest rate for term deposits in MDL went up 1.09 percentage points, amounting to 11.99% (10.71% for legal persons, 12.19% for natural persons, compared with 8.45% and respectively 11.63% in July) As regards term deposits in foreign currencies, official data reveal an increase of MDL 179.3 mln (29.8%) in August, compared with July. Transformed into USD, the amount of term deposits in foreign currencies constituted 58.6 mln. The boost is due to MDL 188.9 mln worth increase of deposits belonging to legal persons. Nonetheless, the deposits made by economic agents diminished MDL 9.6 mln (14.1%). The average interest rate for term deposits in foreign currencies went up 0.1 percentage points in August, reaching 5.22% (4.63 for legal persons and 5.27 for natural persons).