The Government and the Central Bank have enough instruments for the national currency rate control
The first Deputy Prime Minister Maya Parnas announced this during the Prisnestrovie’s First Channel’s live show when she was commenting on the offers to ‘turn on the money printing press’ prevailing in social networks. According to her, unloading of cash to the market will entail the consumers’ demand increase. ‘In its turn, this will provoke the necessity for increasing the supply. If we don't increase the output and supply increase, the inflation would be inevitable. We observed this happening during quite a long time when we had a galloping annual inflation at the level of 20-25%,’ she told.
The Pridnestrovie’s inflation rate makes 1.9% today following the results of 11 months. ‘The Government together with the Central bank has to make a huge effort to achieve this result,’ Maya Parnas emphasized.
She reminded that the rising inflation made necessary to adjust the level of salaries and pensions, and accordingly this requires increasing the budget income in its turn. ‘This is a looping process, and ‘turning on the money printing press’ or releasing the currency rate, we may get into such conditions that it will be difficult to resume our natural course,’ the first Deputy Prime Minister told.
According to her, for now, the Government and the Central Bank have enough instruments to keep the market stable without cash unloading or Pridnestrovie’s ruble devaluation.