The Synopsis of the Currency Policy in Post-Soviet Moldova (1991-2011)

Abstract

The National Bank of Moldova, as well as a number of other central banks in the world, has formulated as basic objective the price stability, and otherwise limiting foreign exchange interventions. These interventions are carried out in strict accordance with the objectives of foreign policy and only when the values recorded for inflation allow this. Thus, central banks chose a floating exchange rate regime, only sometimes controlled.In first chapter will be mentioned theoretical aspects of exchange rate management, instruments of central bank, the reasons, circumstances and the effects of central bank involvement in the game of supply and demand on the foreign exchange market. The chapter ends with the presentation of the main actions taken by the U.S.A., Singapore, Switzerland and New Zealand, which facilitated their currencies to be regarded as the most stable in the world.The second chapter has a pronounced analytical character. It is a retrospective analysis of the evolution of MDL against USD to the causes and consequences of social - economic situation in Moldova, the values recorded during the independence of the Republic of Moldova. It is also an evaluation of the currency policy interventions and enumeration of the problems faced by the central bank and other domestic foreign exchange market participants.We consider that it is a very important theme of investigation, because the exchange rate of an economy affects aggregate demand through its effect on export and import prices.