Transnistria’s central bank left without forex reserves

Transnistria’s central bank left without forex reserves
By bne IntelliNews April 18, 2016

The central bank of the Moldovan separatist republic of Transnistria has no foreign currency reserves, reported on April 16 quoting central bank governor Eduard Cosovski.

Transnistria’s central bank strives to maintain a fixed exchange rate regime of 11.3 Transnistrian rubles to the US dollar. However, exports have declined significantly, by 27% y/y over the past three months, according to state news agency Novosti Pridnestrovya.

A contract signed by Transnistrian power group Cuciurgan on the delivery of electricity to  Moldova only delayed the complete depletion of the forex reserves, Cosovski explained.

Transnistria’s central bank had forex reserves of $19.8mn at the end of last year. Moldova paid $40mn in advance for the electricity purchased from Cuciurgan, but the power unit and telecoms company Interdniestrcom purchased back $16mn from the market. Thus, the central bank was left with $43.8mn in its vaults. Of this total, $31.6mn were sold in daily auctions and $12mn were used on the foreign currency market in January-February.

The Transnistria government issued a decree on March 28 stating that exporters have to sell 7% of their foreign currency revenues to the central bank, reported.


“There was a deficit seen in the Transnistria’s foreign exchange market at the beginning of March, 2016”, Novosti Pridnestrovya reported at the end of March.

Related Articles

Moldovan businessman Stati threatens to ask bailiffs to sell Kazakh Kashagan stake in legal battle

Moldovan businessman Anatolie Stati’s spokeswoman said on January 9 that Stati will ask bailiffs to sell a $5.2bn stake in the Kashagan oil field owned by Kazakh sovereign ... more

Moldova’s pro-Russian president suspended again

Moldova’s Constitutional Court has temporarily suspended pro-Russian President Igor Dodon from his post in order to allow the ruling coalition and the government to enact decrees that Dodon had ... more

Most Moldovans can't name any trustworthy politician

Almost half of all Moldovans, 49.5%, do not trust any politician, the results of the Public Opinion Barometer showed on December 14, reported. More respondents also picked “Don’t ... more