After a decline in August, remittances in September increased by 8%, including in Euros – by 7.5% and in US dollars – by 9.7%. In September, $146 million was transferred to the population from abroad, including Euro (in dollar equivalent) 118 million. In total, since the beginning of the year, $1.2 billion was transferred in favor of the population (including Euro in dollar equivalent 980 million).
Economist Vladimir Golovatiuc notes both the annual decrease in the volume of transfers (by 0.6%), in particular due to transfers in dollars (-6%), and the continuation of the downward trend of cash flows in the general discourse of external receipts in favor of Moldovan citizens.
“A continuous decline in remittances from abroad has been observed since August 2023. During this period, compared to previous years, the total volume of remittances decreased by 31%. If we compare it with January-September 2021, the total amount of remittances has remained practically unchanged for 4 years, but in Euros it increased by 24%, and in US dollars it decreased by 43%. The main currency has firmly become the European currency, the share of which in the structure of transfers is about 82%”, says Vladimir Golovatiuc.
Nevertheless, the European currency does not want to become a means of deposit savings of Moldovan citizens, at least in lei equivalent. In September, while the total volume of new deposits increased (+6.2% vs. August), deposits of individuals practically did not increase (+0.1% vs. August). Although in annualized terms, compared to September 2024, individuals’ deposits in national currency increased by 60.1%, and in foreign currency only by 12.7%.
The leading role of the national currency (75%) in the total volume of banks’ deposit accounts can be traced at the level that does not depend on the type of depositors. The volume of deposits attracted by banks in foreign currency amounted in September to 1,142.0 million lei, decreasing by 3.8% as compared to the previous month, while the total attracted funds amounted to 4.6 billion lei.
Now, the average rate on deposits attracted from individuals in national currency remained at 5.28%. The average rate on deposits attracted in foreign currency increased by 0.05 percentage points and amounted to 1.32%. Time will show whether the attractiveness of Moldovan foreign currency deposits for citizens will change after the liberalization of the foreign exchange market.
