Expert: Leu appreciates against major foreign currencies for third consecutive month
The Moldovan leu is appreciating against major foreign currencies for the third consecutive month as the currency market has overcome shocks related to the energy crisis and the war in Ukraine, economic policy expert Veaceaslav Ionita said. The demand for foreign currency from economic agents is decreasing as a result of the cheapening of energy resources, which are imported. On the other hand, the supply of foreign currency from the population is increasing, says the expert.
The situation related to the appreciation of the national currency against foreign currency is in favour of farmers, said economic policy expert Veaceaslav Ionita. According to him, farmers are directly influenced by the exchange rate, especially at this time of the year, when more investments are made to get a good harvest.
"For the first time, what is happening now on the currency market corresponds to what farmers need. A stronger leu in spring is what farmers want. If the leu is weaker in the autumn, farmers will be the happiest this year. The strong leu in the spring means that investments made in the spring, in buying fertilisers and oil products, which are imported, will pay off," said the expert.
The economist says that since the beginning of this year, the Moldovan leu has appreciated against all currencies, and in April it is even stronger. Thus, the leu has risen 17 percent against the Russian ruble, 6.3 percent against the dollar and about 3 percent against the euro.
Veaceaslav Ionita also said that in the past years energy resources have affected the currency market the most. If in 2020 their imports amounted to $589 million, in 2022, in the second year of the crisis, it is estimated to reach $1.7 billion.
