The foreign exchange reserves of the National Bank of Moldova increased by $10 million, $5.3 billion in the period January 12-19, central bank data show, writes Bani.md.
The increase in official reserves was due to the central bank’s intervention in the foreign exchange market by buying foreign currency from the market in the face of weaker demand than supply.
Investments in securities amounted to $4.3 billion, term deposits – 961.4 million lei, investments in central banks of the Bank for International Settlements and the International Monetary Fund – $448.8 million, and investments in banks with offices abroad – $512.5 million. Moldova’s gold reserves were worth $4.8 million.
Official reserve assets, also known as gross international reserves, are assets controlled by the National Bank of Moldova. These assets are used for direct financing of balance of payments imbalances, indirect adjustment of balance of payments imbalances through interventions on the foreign exchange market, implementation of monetary and foreign exchange policies of the National Bank of Moldova, and other purposes. Other foreign exchange assets refer to those owned by the National Bank of Moldova that are not included in the official reserve assets.