Moldova's Central Bank Steps In to Meet Foreign Currency Demand

The National Bank of Moldova intervened in the foreign exchange market in August, making net purchases of $19.0 million to cover demand from businesses and private individuals.

A decline in activity was recorded on both sides of the foreign exchange market, with demand from businesses falling by 13.3% (or $54.3 million) to $354.1 million compared to the previous month.

Supply from private individuals also fell, but less significantly - by 4.6% (or $18.7 million) - to $390.5 million.

The average exchange rate of the Moldovan leu against the US dollar slightly strengthened in August, standing at 17.7381 MDL/USD, while the euro continued to dominate the structure of net foreign currency supply by private individuals with a share of 69.1%.