Tiraspol, 18 October. /Novosti Pridnestrovya/. The currency issue was one of the topics dealt with at the congress of entrepreneurs, which took place yesterday. The main question that troubled representatives of small and medium-sized businesses was when and at what exchange rate foreign currencies, in particular the US dollar, would be back on sale.
The chairman of the Pridnestrovian Republican Bank, Eduard Kosovsky, explained that all problems were caused by an imbalance between supply and demand. For example, on 17 October demand was equal to $47 million while supply was only $50,000.
That situation began to take shape back in early 2016 after a year-long reduction of currency inflow to Pridnestrovie.
«Over eight months of this year the inflow of currency to Pridnestrovie decreased by $200 million, as compared to the same period of 2015, and by nearly $390 million, as compared to the same period of 2014. In terms of monthly statistics, monthly receipts this year are $11 million and $33 million less than in the last year and the year before last, respectively," said President Yevgeny Shevchuk.
«Currency is also a commodity whose price is set depending on supply and demand. Let me give you one arithmetic example: the country has $1 and 2 roubles; the exchange rate is $1 equal to 2 roubles; the country begins to receive $0.5 instead of $1, and the exchange rate changes correspondingly to 4:1," added Eduard Kosovsky.
The head of state recalled it had been proposed to improve the situation through a moderate devaluation — to $12.5−12.7 per dollar.
«But this proposal, as you know, was rejected by the Supreme Council. The time has passed, and the imbalance, when growing, turns into a snowball," said the president.
According to the PRB chairman, the existing problem has only two solutions: huge investments in the republic, which in his view is very unlikely, or devaluation, which «has in fact already occurred».
The dual exchange rate situation — co-existence of official and unofficial rates — will only aggravate the situation and will not help to return currency to the market.
«The official rate, of course, does not reflect the proportions prevailing in the economy. This actually allows only individual players to use this currency to the detriment of others-those who are not able to buy it. And this dual rate results in the rate rising to a considerably higher extent than that we could have if it were single and similar for everyone," he said.
The chief banker also noted that Pridnestrovie is the only country in the world where the exchange rate is set by the parliament.
