The euro could become the reference currency of the National Bank of Moldova (BNM) for interventions in the foreign exchange market, setting the exchange rate, and storing foreign reserves, said the Governor of BNM, Anca Dragu, during the presentation of the Inflation Report, as reported by BANI.MD.
Anca Dragu explained that interventions and exchange rate quoting are currently made in relation to the US dollar. However, it is possible to switch to the direct use of the euro, considering that Moldova’s most significant trade volume is with European Union countries. According to data, over 65% of Moldova’s foreign trade is done with EU countries. In this context, she emphasized that moving to the euro as the base currency for transactions, interventions, and reserves would be a natural and logical step.
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The BNM Governor also mentioned they would provide more details about this proposal by the end of 2024.
”This process would bring benefits to the population and the business environment in the country while strengthening financial stability and highlighting Moldova’s commitment to continue its European integration,” concluded Dragu.