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

Moldova denies airspace to Russian Deputy PM Rogozin's jet in new spat over Transnistria

Russia’s Deputy Prime Minister Dmitry Rogozin plans to go ahead with visits to Moldova and the separatist republic of Transnistria despite his military plane being denied overflight rights by ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Planned changes to electoral legislation in Moldova prompt mass rallies

Tens of thousands of Moldovans took to the streets on June 9 at rival rallies for and against planned changes to the electoral system.  On May 5, an ad-hoc parliamentary majority formed by ... more