Moldova further aligns itself with Europe in monetary, energy policies as it ditches dollar as reference currency

The National Bank of Moldova has officially adopted the euro as the reference currency for setting the official exchange rate for the Moldovan Leu, replacing the previously used US dollar.

President Maia Sandu announced this decision which took effect from January 2, as Caliber.Az reports citing Moldovan media. 

According to her, this move reflects the country's economic orientation towards the European Union market and should bring benefits to foreign trade. providing a higher predictability in the international commercial transactions. ’’This decision will bring more clarity for the Moldovan companies which export to the European market. The currency exchange costs will drop and the businesses will be able to plan investments and commercial transactions with more confidence,’’ the head of state said.

The Euro is the most popular currency on Moldova's exchange market at the moment, accounting for more than 60% of commercial transactions and 70% of money transfers. 

The announcement came amid Moldova switching to natural gas deliveries from Bulgaria in an initial test-run, with fuel to be pumped into the country through the Trans-Balkan Corridor, according to a statement by the Vadim Cheban, the Head of Moldova's gas distribution company, Moldovagaz.

This rapid chain of events was set into motion when Russian energy giant Gazprom informed Moldovagaz that it would stop gas deliveries to the country from January 1, 2025. Gazprom cited breaches of the contract by Moldova as the reason for the suspension, in particular the untimely manner of making payments.

By Nazrin Sadigova