Rumors on possible Leu’s denomination is due to population’s mistrust in RM’s development

The rumors regarding the denomination of the national currency is not justified by the economic and financial realities of Moldova, and is fed by population’s mistrust in positive development of the state of affairs, fact that unavoidably leads to mistrusting towards authorities, national currency, as well as towards Government’s capacity to handle the situation. The economic expert Veaceslav Ionita made this statement on Thursday, 27 July, on the occasion of launching the Economic Monitor for the II quarter. According to the expert, at present the denomination of the national currency has no logic, because this happens only when a “three-figure” inflation is registered. At the same time, he notes that inflation is linked to the negative perception of the population about the rather bad situation in Moldova. Ionita gave as example the situation of Germany, where a survey made in 2005 showed the positive perception of the population as regards the development, and due to this Euro gained some points. In Ionita’s opinion, the situation is going to be more unpleasant as the national economy needs money, meaning liquidities, deposits placed in banks, bonds, although the country has neither cash nor long-term deposits and bonds. In the light of the Socio-Political Barometer, launched on 19 July in Chisinau, 50% of the respondents consider that things in Moldova follow a wrong path, their number increasing by 2% compared with a similar survey made in February. Previously, the National Bank of Moldova has addressed an appeal to the population not to get influenced by the speculations and misinformation regarding the denomination or changing of the national currency. BNM stated that this information has no ground and has a manipulating nature, and there are no pre-conditions for panic. According to BNM, the Moldovan Leu is now stable and the experts do not know any reason leading to such misinformation. The Moldovan leu was introduced as RM national currency on 29 November 1993, having back then an exchange rate against the US dollar of 4 lei. Now the exchange rate leu/dollar got over 13 lei.