Tiraspol, 1 June. /Novosti Pridnestrovya/. The central bank has proposed devaluing the rouble by 10% and set a new currency corridor of 12.25 — 12.75 roubles per dollar. At a session of the Supreme Council the head of the Pridnestrovian Republican Bank said that this measure is necessary to stabilise the foreign exchange market.
«The devaluation has occurred de facto. It is time to provide a legitimate basis to it," said Kosovsky.
According to unofficial data, the US dollar's black market rate is 13−14 roubles, whereas its official exchange rate remains in the range of 11−11.3 roubles per dollar.
According to the chair of the central bank, the 10% devaluation will decrease a speculative demand for foreign currency and return exchange rate formation to the official framework.
«The 10% devaluation will level out the situation, but without a possibility of replenishing the country's gold and foreign currency reserves. We'll have to work on a just-in-time basis," he explained.
Besides, according to Kosovsky, this measure will minimise currency export, equalise the purchasing power of the PMR's currency with neighbouring countries' and level out the domestic market.
The central bank, in the meantime, realises inflation risks and proposes to introduce state regulation of prices and tariffs, Kosovsky clarified.
The foreign exchange crisis in Pridnestrovie began due to a sharp reduction in currency inflow to Pridnestrovie caused by a drop in exports and an amount of private money transfers in 2015. In early March 2015 the situation aggravated — according to a new contract, the price for electric power supplied to Moldova fell by 28%, which caused an even greater reduction in currency earnings and, consequently, the country's currency reserves. The ensuing foreign currency fevers lead to a deficit which in several weeks spread all over the country. The central bank took technical measures to stabilise the situation and proposed several scenarios of devaluing the rouble. If prior to the reduction of electric power supply prices, the PRB's gold and foreign currency reserves allowed it to maintain the rouble's current rate, after March 2016 it became impossible due to a considerable reduction in these reserves. The Supreme Council did not approve the rouble's devaluation and decided to keep a corridor of 11−11.3 roubles per dollar. This decision resulted in the flourishing of a currency black market and a considerable imbalance between the official and unofficial rouble rates. Banks are not able to respond to the foreign currency demand so far.
