Starting january 2, 2025, the euro will replace the US dollar as the reference currency for determining the official exchange rate of the Moldovan leu. The National Bank of Moldova (NBM) stated that this decision reflects the alignment of Moldova’s economy with the European Union market, which plays a dominant role in the country's trade and financial structure, IPN reports.
The NBM explained in a press release that the change will reduce exchange rate fluctuations between the leu and the euro, as well as narrow the gap between buying and selling rates for the euro. This will benefit the economy and lower foreign exchange costs.
Official data indicates that over 60% of Moldova’s trade transactions and 70% of remittances are in euros, making the euro the most commonly used currency in the local foreign exchange market. The shift is expected to enhance exchange rate stability, benefitting the national economy.
Additionally, the NBM emphasized that adopting the euro as a reference currency is a methodological decision aimed at aligning Moldova's financial structures with those of the European Union. It will not affect the NBM's monetary policy. The transition is purely technical and designed to support macroeconomic stability and European integration, with no direct impact on citizens or businesses.
According to the NBM, the benefits for citizens include a more stable EUR/MDL exchange rate, reduced currency risk, and lower transaction costs - key advantages for those receiving remittances or holding euro-denominated loans. For businesses, reduced exchange rate volatility will aid financial planning and mitigate risks in commercial transactions with EU partners. The banking sector and businesses will also benefit from a more liquid EUR/MDL currency market and lower trading costs.
