The depreciation of the Russian ruble will affect Moldovans with low incomes and those dependent on remittances from Rusia. Roman Chirca, director of the Market Economy Institute, said during the “Place of Dialogue” talk-show on Radio Moldova that the fall of the ruble will mostly hurt two sectors of Moldovan economy: remittances and exports, IPN reports.
“I think the exports will suffer a little less because the Russian embargo forced many Moldovan producers to reorient themselves towards other markets, including the West. I also think that part of the Moldovans working in Russia won't be affected because they are competitive and are paid in euros or dollars. Nonetheless, I expect remittances from Russian to decrease by 20% in 2015, which is about 150 million dollars. Of course, the fall of the ruble will lead to the depreciation of the Moldovan leu, but I don't think that inflation will go beyond 10%”, said Chirca.
Economist Viorel Chivriga noted that the depreciation of the ruble will affect the Moldovan poor, who depend on remittances from Russia, and the businesses that export to Russia and have contracts that stipulate payments in installments or on the long term. If the leu depreciates, then consumption will drop and, subsequently, tax revenue will decrease as well”, said Chivriga.
The expert criticized the state authorities for the lack of emergency measures. “First of all, BNM must make its position clear and stop speculation on the currency market. It's also necessary to prevent panic among the people. Unfortunately, we are still a country of non-actions, still economically dependent on Russia and this undermines us not only commercially”, concluded Chivriga.
