Go to main content
  • 17.01.2025

Moldova: From the US dollar to the euro - change of reference currency

Since 2 January 2025, Moldova has used the euro as its reference currency, replacing the US dollar. A reference currency is a foreign currency used by the national central bank for foreign exchange market interventions and exchange rate smoothing.

In recent years, the euro has increasingly replaced the US dollar as Moldova’s main trading currency. Moreover, the majority of foreign currency loans and deposits in Moldova are denominated in euros. In addition to the importance of the EU as a trading partner for Moldova, the Union is also an important investor: two-thirds of foreign direct investment comes from the EU. The country’s aspirations for EU integration will also increasingly tie Moldova to the European single market and the eurozone.

What are the benefits of changing the reference currency?
  • Given the dominance of the euro in various areas, the change of reference currency reflects the market reality.
  • The Moldovan central bank will intervene in the interbank market mainly in euro, while commercial banks will also settle their interbank liabilities in euro.
  • This will increase MDL/EUR liquidity and reduce volatility.

A more stable exchange rate with Moldova’s main trading and economic partner will benefit the real economy.

Against this background, the German economic team recommended a change of the reference currency in an analysis published in August 2023. We are pleased to have contributed to this important step with our analysis.