1. Tbilisi, Georgia June, 2009 Conference on “The Modern Role of Central Bank in Small Open Economies” Monetary Policy of National Bank of Moldova : objectives, achievements and challenges

2. National Bank of Moldova – central bank of Republic of Moldova – autonomous public legal entity responsible to the Parliament 1. The primary objective of the National Bank is to achieve and maintain price stability. Without prejudice to the primary objective, the National Bank shall foster and maintain a stable market-based financial system and support the general economic policy of the State. 2. Administrative Council of the National Bank of Moldova is composed of five members: Governor, First Vice-Governor and three Vice-Governors. 3. Members of Administrative Council are appointed by the Parliament fo the Republic of Moldova for 7 (seven) years. Legal Framework

3. Inflation CPI last 12 months

4. Monetary Policy Instruments used in 2008 - 2009 Monetary Policy Instruments in the first stage Increase of the base rate from 13.5% up to 18.5%. Increase of the reserve requirements ratio applied both to the attracted funds in local and foreign currencies from 15.0% up to 22.0%. Monetary Policy Instruments in the second stage Decrease of the base rate from 18.5% up to 10.0%. Decrease of the reserve requirements ratio applied both to the attracted funds in local and foreign currencies from 22% up to 17.5%.

5. Inflation, Base rate, Required reserves

6. Monetary aggregates

7. Deposits y-o-y (%)

8. Deposits structure (%)

9. Credits y-o-y (%)

10. Foreign Exchange Reserves

11. Exchange Rate

12. Inflows and outflows 2009 (accrual, against 2008, %)

13. Inflow and outflow balance mil. USD

14. Interest rates (MDL)

15. Interest rates (foreign currency)

16. Objectives for 2009 The monetary and F/X policy for 2009 is aimed at ensuring and maintaining price stability at a level up of 9.0% ±1.0% based on the following principles: –maintaining the NBM base rate positive in real terms; –setting up the reserve requirements ratio at a level consistent with the rate of inflation, inflation expectations, economic environment and money market conditions; –enhancement of the monetary policy instruments to promote efficient open money market operations; –monetization of the economy will be adequate to ensure the forecasted economic growth; –maintaining a floating exchange rate regime.

17. Thank You for Your Attention! 7 Renaşterii Ave., Chişinău, Republic of Moldova MD-2006 Tel. (3732) 221 403, fax (3732) 212 050, www.bnm.md