18 Feb 2015 15:12

Nat'l Bank of Moldova hikes refi rate as currency plummets

CHISINAU. Feb 18 (Interfax) - The National bank of Moldova (NBM) has put its refinancing rate up from 8.5% to 13.5% pa as the leu, the national currency, plummets against the dollar.

"We think the increase in the rate will have a positive impact on the leu's exchange rate," the bank's governor, Dorin Dragutanu, told reporters.

The NBM set an official exchange rate of 20.9933 lei/$1, for February 18, compared with 19.5949 lei/$1 for February 17.

The leu plummeted 20% against the dollar in 2014 and has fallen another 25% so far this year.