The PRB report: situation in the economy, in the foreign exchange market and with Russian rubles

Deputies of the Supreme Council heard a report on the activities of the Pridnestrovian Republican Bank for 2019. The Central Bank of Pridnestrovie is a conductor of the monetary policy of the state, plays a significant role in ensuring stability in the financial market of the republic.

The head of the PRB Vladislav Tidva, starting his report, emphasized that the world economy in 2019 was characterized by the weakest economic growth in the last decade and low inflation. The main factors of the slowdown in the global economy, the Central Bank chairman called the actions of several countries - the largest economies in the world, uncertainty regarding trade between countries and increasing geopolitical tensions. Vladislav Tidva noted that the negative dynamics of the global economy and regional complexities had a direct impact on Pridnestrovie.

Difficulties began with the opening of accounts by Pridnestrovian enterprises in the banks of Moldova, problems arose in the implementation of international settlements and the conversion of Moldovan lei into foreign currency in 2019. By the end of 2019, problems began with the functioning of cards of international payment systems in the territory of Pridnestrovie, whose work was completely stopped in January 2020. Deputies focused on these topics, asking their questions to the Head of the Central Bank of Pridnestrovie.

The PRB calls the situation in the foreign exchange market generally stable enough in 2019. The exchange rate of the ruble against the US dollar is within the approved exchange rate band 16,10 -16,50. The ratio of supply and demand in the foreign exchange market has developed in favor of supply in 2019. Moreover, the net demand of legal entities was covered by the net supply of individuals, which became possible, including due to the growth of transfers from abroad (+ 13%).

The strengthening of the national currencies of a number of countries - the main trading partners (in particular, the Russian ruble and the hryvnia) in conditions of fairly moderate dynamics of inflationary processes both in Pridnestrovie and in most countries, has affected the improvement of the price competitive position of Pridnestrovian goods in foreign markets - real effective rate Pridnestrovian ruble decreased by 3.5%. This leveled its strengthening at the end of 2018.

The Head of the PRB focused on lending to the population. In particular, it was a question of mortgage lending. Commercial banks operate under two mortgage lending programs - to purchase housing in the primary and secondary housing markets. According to Vladislav Tidva, 291 Pridnestrovian families were able to purchase their own housing in by means of mortgage in 2019.

Deputies of the Supreme Council were interested in various issues, ranging from the total volume of consumer lending to problems in the interaction of Pridnestrovian enterprises with Moldavian commercial banks. There was also a question about why pensioners who receive a Russian pension cannot withdraw their money in Russian rubles from the account. Vladislav Tidva agreed that in recent months this has indeed been problematic. The chairman of the PRB explained: cash in Russian rubles was accumulated in the hands of the population, since many people took the Russian pension from their accounts completely, then did not exchange it for Pridnestrovian rubles, since they began to spend less during the state of emergency and quarantine. The volume of exchange operations fell, cash Russian rubles stopped returning to banks.

Vladislav Tidva noted that pensions in Russian rubles can be stored indefinitely in a bank account. You can withdraw cash Russian rubles as necessary in parts or by exchanging them immediately for Pridnestrovian rubles. In the period when Sberbank did not give pension to the Pridnestrovian pensioners in Russian rubles, some cash supply was accumulated. And in July, Sberbank is likely to resume issuing a pension in Russian rubles upon request, but the risk of a recurrence of the situation is not excluded.  

Deputies of the Supreme Council approved the report of the Pridnestrovian Republican Bank for 2019 and adopted corresponding resolution.