Compared to the previous month, the net supply of foreign currency from individuals decreased by 18.5 million euros (-6.6%), while the net demand for foreign currency from companies decreased by 2.2 million euros (-0.7%). In the reporting month, the NBM did not intervene in the domestic foreign exchange market, and the price of foreign currency should increase in order to meet the demand.
“The sale of foreign currency by the population is a serious resource to support the level of consumption. Due to the sale of foreign currency, the population receives about 70-90 billion lei. This is equivalent to 60-80% of the labor remuneration fund for the national economy, including state administration bodies of all levels, as well as the banking system, etc. On the market of cash foreign currency in May, sales are growing, while its purchases are decreasing. Net sales of foreign currency have been growing for 14 months, but its volumes are decreasing year-on-year,” says economist Volodymyr Golovatyuk.
In May, the population sold currency in the amount of €331 million against €324 million a year earlier. The growth is 1.9%. Purchases amounted to 92.4 million € against 101.6 million in May 2024. A decrease of 9.1%. Since February, households’ sales of euros have been increasing and dollar sales have been decreasing due to the exchange rate difference. The opposite trend was registered with the purchase of foreign currency by the population.
However, as the expert notes, already in May, sales of major currencies by the population changed places – “sales of the US dollar increased (by 23%), which is strange, given the continuing decline in the exchange rate of the US currency to the MDL, and sales of Euros by the population decreased (by 5.5%)”.
