BNM bought millions of dollars from the market to keep the leu stable

As of July 29, 2022, official reserve assets amounted to US$3.725 billion, up by US$108.71 million compared to June 30, 2022, when they amounted to US$3,616.39 million, National Bank data show of Moldova.

The increase in official reserve assets was driven by net inflows of required foreign currency reserves of licensed banks: US$ 66.89 million, net interventions in the domestic foreign exchange market in the form of foreign exchange purchases: US$ 55.00 million and the registration credit from the Government of the Republic of Poland in favor of the Ministry of Finance of the Republic of Moldova for financing the state budget, including for the management of the refugee crisis: 20.04 million US dollars (equivalent to 20.0 million EUR).

At the same time, the reduction of official reserve assets is due to the depreciation of the exchange rates of the component currencies of foreign reserves in relation to the US dollar: 28.15 million US dollars, payments related to the external public debt service of the Republic of Moldova: 8.54 million. US dollars and payments to the Ministry of Finance of the Republic of Moldova: 4.71 million US dollars.

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Octavian Armașu, the governor of the National Bank of Moldova claims that the NBM has enough reserves to deal with currency shocks in the market. Currently, they account for about six months of imports.

The official reserve assets (identical to the gross international reserves) are the assets available at any time and controlled by the National Bank of Moldova for the purpose of direct financing of the balance of payments imbalance, for the indirect adjustment of the balance of payments imbalance by carrying out interventions on the foreign exchange market in the purpose of implementing the monetary and currency policy of the National Bank of Moldova, as well as for other purposes. Other foreign currency assets are those foreign currency assets, which belong to the National Bank of Moldova and which are not part of the official reserve assets, and foreign currency assets owned by the Government of the Republic of Moldova.