Tiraspol, 24 March. /Novosti Pridnestrovya/. In connection with the situation in Pridnestrovie's currency market caused by the existing imbalance of supply and demand for foreign currency and with no sufficient contributions to the state's gold and exchange currency reserves, the central bank has elaborated an action plan for measures to stabilise the domestic exchange currency market and maintaining the stability of Pridnestrovie's national currency. The plan was approved at the bank's board meeting on 5 March 2016.
To strengthen the economic security of the Pridnestrovian Moldavian Republic and the implementation of the president's decree No. 558 of 26 November 2013 «On approval of the State Strategy for the Economic Security of the Pridnestrovian Moldavian Republic», the following measures have been worked out:
1) fixing the amount of compulsory sale of a part of currency earnings obtained from export operations — the corresponding legal act submitted to the president);
2) reducing the terms of the repatriation of currency earnings, established by the law «On currency regulation and control», from the current 210 to 90 days. In this regard lawmakers should pay attention to the absence of a real and effective mechanism of bringing to account for the violation of repatriation terms (the corresponding act submitted to the president);
3) supplementing the president's decree No. 67 of 13 February 2013 «On some measures to intensify activities of business entities of the Pridnestrovian Moldavian Republic» in order to extend the decree's application to individula entrepreneurs (the corresponding act submitted to the president);
4) increasing the norm of mandatory reservation and insurance of funds obtained from credit institutions (decision by the PRB board of 9 March 2016, protocol No. 18, the corresponding act to be registered by the Ministry of Justice);
5) reducing the norm of net foreign exchange position for credit institutions (decision by the PRB board of 9 March 2016, protocol No. 18, the corresponding legal act to be registered by the Ministry of Justice);
6) not bringing credit institutions to account for the violation of the norm of net foreign exchange position (short currency position) in case the credit institution fills clients' demands for foreign currency necessary for paying foreign economic contracts (decision by the PRB board of 9 March 2016, protocol No. 18, the corresponding legal act to be registered by the Ministry of Justice);
7) limiting the maximum amount of foreign currency cash exported by an individual person outside the Pridnestrovian Moldavian Republic from $5,000 to $1,000 without producing documents to customs authorities confirming that the exported foreign currency cash or foreign currency cheques were transferred, imported or wired to the PMR (decision by the PRB board of 9 March 2016, protocol No. 18, the corresponding act to be agreed with the SCC of the PMR);
8) changing the terms of holding currency auctions, including deferments of the supply of funds purchased at currency auctions (decision by the PRB board of 9 March 2016, protocol No. 18, the corresponding legal act to be registered by the Ministry of Justice);
9) introducing a tax on the purchase of foreign currency cash with the possible target allocation of a tax (proposal submitted to the president);
10) making requirements for the sale of foreign currency cash over a certain amount upon mandatory presentation of a passport (being elaborated at the interagency level);
11) establishing barrier duties on the import of «minor goods» (being elaborated at the interagency level);
12) conducting operative activities to prevent speculative operations in the foreign currency cash market.
These measures are to be implemented by the Pridnestrovian Republican Bank by both amending and supplementing the bank's regulatory acts and requesting the president, the Supreme Council and the government to initiate the preparation of this or that document within their jurisdiction.
A number of measures, some of which have been submitted to the Ministry of Justice for registration, are currently being implemented. Some measures, however, should be approved at the legislative level and now are being agreed on.
Point to the fact that as early as 17 February 2016 the PRB sent a letter to credit institutions with a strong recommendation to lower the margin when conducting currency exchange operations at exchange offices.
A list of these measures is not exhaustive and will be adjusted or supplemented depending on the situation in the country's exchange currency market.
The central bank highlights the fact that the active discussion in the media of issues relating to the situation in the currency market and measures of state control leads to market destabilisation and panic among market participants, the distrust of all public authorities and significantly complicates a way out of the crisis situation.
Overcoming the existing problems can only be efficient in the event of the consolidation of all government structures rather than an oratory contest during an election campaign.
International experience shows that the independence of the central bank is a necessary condition for elaborating and implementing a monetary policy that excludes the possibility of making politically charged decisions.
The main aim of all bodies of state power and administration, including the central bank, is to promote the economic growth of the country and prosperity of its citizens.
The above measures, proposed by both individual people's deputies and the government, as well as by public representatives, are in fact the approval of earlier decisions made by the central bank, which is evidence of their efficiency and relevance. At the same time, to avoid ungrounded allegations and misunderstanding, the central bank thinks it necessary to inform the public on all factors and economic estimates underlying the proposed measures aimed to change the parameters of the monetary policy and currency regulation for 2016, the public communications department of the PRB reports.
