After increasing in August and September, Moldova’s official reserve assets decreased by 22.26 million euros in October, totaling 5,141.43 million euros.
The currency swing was reversed by the need to maintain the exchange rate of the national currency and fulfill debt obligations. The reduction is primarily due to payments for servicing foreign debt (by 26 million euros) and the sale of foreign currency by the National Bank (by 33 million euros).
The inflow of foreign exchange in October as a result of the depreciation of the euro against other reserve currencies (+22.6 million euro) and the receipt by the government of loans and grants for investment projects (+4.1 million euro) could not compensate for expenditures from reserves.
The overall balance since the beginning of 2025, taking into account the dynamics of revenues and expenditures – the reduction of official foreign exchange reserves by 106 million euros, calculated economist Vladimir Golovatyuk, while a year earlier they increased by 270 million euros.
“Despite the still super-sufficient size of foreign currency reserves, a dangerous tendency of its reduction has been observed. The need to service the state debt while reducing foreign currency revenues to the government, to pay for growing imports when export earnings fall, as well as the need for foreign exchange interventions by the National Bank when there is a general shortage of currency on the market may provoke the depreciation of the Moldovan leu, the subsequent rise in prices and much more,” said Vladimir Golovatiuc.
During 10 months, the government received loans and grants worth 651 million euros. At the same time, the expenses for servicing the external debt reduced the foreign currency reserves by 456 million euros. Also, the decrease in reserves since the beginning of the year was affected by the strengthening of the European currency – by 321 million, sale of foreign currency – by 178 million and some other operations.
