News about Monetary policy

Russians sharply increased the amount of cash in circulation in July. According to the Bank of Russia, the figure rose by ₽643.4 billion (approximately €7.2 billion), which is nearly one and a half times the increase seen in June. Since the beginning of the year, the amount of cash has increased by ₽2.1 trillion (about €23.5 billion).

During a press conference today, Moldovan Prime Minister Vasile Tofan confirmed that the new fiscal and tax policy framework includes an increase in the income tax rate for banks from the base rate of 12% to 18%.          

The National Bank of Moldova raised its benchmark interest rate from 7% to 7.5% per annum. The decision was adopted unanimously at a meeting of the NBM Executive Committee on August 6, 2026. The reserve requirement ratio remains at 18% for lei and 26% for foreign currency.

Moldovan Prime Minister Vasile Tofan announced an increase in the corporate income tax rate for banks and financial institutions from 12% to 18%. This measure, which increases the rate by 50%, will be temporary—lasting only one tax year as part of the 2027 budget and tax policy.

In Moldova, the thresholds within which residents may conduct foreign exchange transactions without permission from the National Bank of Moldova (NBM) will be raised from 10,000 to 100,000 euros, and from January 1, 2028, to 250,000 euros.

The Bank of Russia has revised downward its forecast for the Russian economy in 2026: inflation may turn out to be higher, and GDP growth weaker, than previously expected.

A quarter of a century ago, the market capitalization of each of the five largest banks in the EU exceeded that of the largest U.S. bank.

The current image of the banking system as a “showcase” is very convenient—it makes it clear who to blame and where to run. But I have some bad news for you: the next crisis will most likely look nothing like the ones before. ATMs will continue to work. Deposits won’t go anywhere. The National Bank will calmly talk about high liquidity and capital adequacy.

The excessive growth in lending during the first half of 2026 did not undermine the stability of the banking system. The National Bank of Moldova (NBM) reached this conclusion, noting that while risks do exist, they are moderate. In addition, banks have taken steps to create a safety cushion as required by the regulator, raising the countercyclical capital buffer rate to 2.5% as of the end of May.

Over the two years that the specialized online platform eVMS.md has been in operation, citizens have invested more than 1.3 billion lei in government securities. During this time, 20 subscription sessions were held, and interest payments to investors exceeded 60 million lei.

This has arguably been one of the main consequences of adopting the euro as the base currency for calculating the exchange rate of the Moldovan leu. The National Bank of Moldova (NBM) cites evidence supporting the soundness of this decision, which for the past year and a half has had a positive impact on both foreign exchange costs and the management of the country’s foreign exchange reserves.

Imagine a Sunday breakfast. Two people are sitting at the table. One has spent his entire life studying bubbles, irrational expectations, and how crowds can turn price into a religion. The other has spent his entire life explaining how reputable institutions pretend to manage risk, when in reality they simply package it nicely in their financial statements so it doesn’t scare off investors prematurely.

On July 29, the U.S. Federal Reserve System (Fed) kept its benchmark interest rate in the 3.5–3.75% range. The price of Bitcoin remained unchanged—the cryptocurrency continues to trade around $64,000.

Dumitru Taraburca, a regular contributor to Logos Press, has presented a new series of articles in which he reveals the “inner workings” of the Republic of Moldova’s banking system and its interconnection with the state of the country’s economy as a whole. One may debate, disagree with, or reject the author’s specific opinions and conclusions. However, they are of unquestionable interest to the expert community and anyone who wants to understand the realities of Moldova.  

In the second quarter of 2026, Moldovan citizens took out a record amount of bank loans amid falling interest rates and growing demand for financing.

The National Bank of Moldova (NBM) plans to coordinate its actions with the government to integrate monetary and fiscal policies as part of the country’s preparations for accession to the European Union. To this end, an international conference is planned for this fall to explore existing opportunities.

The signing of a 20-year data center lease is unlikely to be viewed as an event related to the monetary and credit sectors. Even the announcement of a stablecoin pegged to the dollar and linked to the artificial intelligence boom would not necessarily fall into this category.

The ECB presented ten possible design options for the next generation of euro banknotes, inviting Europeans to help determine the appearance of the bloc’s future paper currency.

At its meeting on July 24, the Bank of Russia cut its key rate by 0.25 percentage points to 14% per annum, despite expectations from most analysts, who had forecast that the rate would remain at 14.25%. At the same time, the regulator revised its inflation forecast downward and warned of persistent risks of rising prices.

Prime Minister Vasile Tofan took the helm of the government during a challenging period for the country. The new cabinet faces a difficult but achievable task: to implement the necessary reforms while maintaining political, economic, and social stability.