Tiraspol, 6 April. /Novosti Pridnestrovya/. Economic experts discussed one more time the situation in the country's exchange market. The topic was brought up during the Economics in Detail show on the First Pridnestrovian TV channel.
The minister of economic development, Dmitry Boltrushko, recalled that the main factor of reducing currency earnings in 2016 was a projected fall in prices for electric power supplied to Moldova.
«Based on 2015 results this accounted for 37% of export currency earnings ($227 million). Thanks to the constant mechanism of currency influx, this stability was maintained last year. The pros and cons of devaluation can be much talked about. Avoiding devaluation is to the benefit of the population as their incomes will remain intact. At the same time, for export-driven enterprises devaluation might be a great help in terms of increasing their competitive ability. However, I must note that raw materials which our enterprises buy are also from abroad, and the savings would be due to a real wages decline," underscored Dmitry Boltrushko.
He recalled the Supreme Council's rejection of the government's proposal to change the currency corridor.
«The monetary policy is the PRB's prerogative, but the final decision is made by the Supreme Council. We argued that it would be optimal for the population to maintain the current exchange value, considering the social profile of the economy. But exchange currency cash cannot emerge out of thin air. The imbalances are evident. The Supreme Council's decision has retained the current corridor of 11.00 — 11.30 roubles per $1. This has resulted in the emergence of the 'black market'," said the minister.
According to the CEO of the Bendery-based Softshoes factory, Yury Cheban, it is necessary to support exporters in the current situation.
«Exporters are not at all ecstatic. The devaluation of the euro against the US dollar by 25% will entail a rise in prices for our goods, including those supplied to the EU. It is necessary to support exporters who will bring exchange currency here and sell it to cover their rouble expanses. But for this, our export capacity will decline. Today's imports are almost twice as much as exports. This will lead to even a more serious imbalance.
Yury Cheban is sure that the support for exporters will compensate for deficient currency supply the country is so much in need of.
«As for the purchase and sale of consumption goods, their prices must be regulated by both public authorities and the Supreme Council. Then, balanced devaluation of 25% will not hit the population," underscored the Softshoes CEO.
«The economic growth will reveal its objectivity towards decisions made by particular authorities," the deputy chair of the Public Chamber, Igor Pavlinov, believes.
He recalled the existence of plan-based economy when the conduct of all market participants could be predicted in the long term.
«In the present situation it is necessary to make clear and prompt decisions for the benefit of all market entities," said Igor Pavlinov.
The deputy chair of the Pridnestrovian Republican Bank, Vadim Stepanov, shares this point of view.
«We'll have to make serious, balanced and objective decision. There is no doubt it cannot be made without the consolidation of all branches of power. In the situation when we were holding consultations with the Supreme Council and did not manage to come to a uniform solution this opportunity was missed. At the same time, the psychological factor has done its part among the population and economic entities. Psychological expectations are the main component in this situation. The efficiency of decision-making is beyond the PRB's jurisdiction. We are wasting too much time. For instance, Russia's central bank has the duty of adjusting currency corridor limits nearly every day," he concluded.
