The National Bank of Moldova announced that starting January 2, 2025, the euro will be used as the base currency to determine the official exchange rate of the Moldovan leu, replacing the US dollar.
The BNB noted that this decision reflects the orientation of the Moldovan economy towards the European Union market, “which plays a dominant role in the country’s commercial and financial structure.”
According to the NBM, this change will reduce fluctuations in the exchange rate of the Moldovan leu against the euro and the difference between the buying and selling rates of the euro, which will benefit the economy and help reduce foreign exchange costs.
“This transition aims to align with economic realities, given that the European Union is Moldova’s most important trading partner and the main source of remittances and foreign direct investment,” – says the NBM.
Official data shows that more than 60% of commercial transactions and 70% of remittances are carried out in euros, which is the most popular currency in the local exchange market. The change will also promote exchange rate stability to the benefit of the economy.
Furthermore, the use of the euro as the base currency is a methodological decision aimed at harmonizing the financial structures of Moldova with those of the European Union without compromising the monetary policy of the NBM.
“Citizens and economic agents will not feel a direct impact, since the transition is technical and aims to maintain macroeconomic balance and compliance with European standards. For businesses, reducing exchange rate volatility will facilitate financial planning and reduce risks in trade transactions with EU partners. “The banking sector and economic agents will also benefit from a more liquid EUR/CDM foreign exchange market and lower transaction costs.” – concluded the National Bank of Moldova.
