The decision was adopted on the basis of the macroeconomic analysis and the assumptions made in the new medium-term inflation forecasting round.

Following the assessment of the main risks and challenges related to banking activity, taking into account the latest economic developments, of the amendments to banking regulation and supervision in the context of the Association Agreement between the Republic of Moldova and the European Union, as well of the actions agreed with the International Monetary Fund, there have been established the main fields and risks on banking supervision process in 2018.

In December 2017, the total amount of net money transfers from abroad made in favour of individuals via licensed banks of the Republic of Moldova amounted to US$ 106.22 million (increasing by 13.0% as against December 2016).

In December 2017, the monetary base decreased by MDL 417.9 million (1.1 percent) compared to the previous month, and totaled MDL 36,997.0 million.

In December 2017, weighted average interest rate on new loans extended in domestic currency recorded 9.58 percent, having decreased by 2.16 percentage points compared to the same period of the previous year.

In December 2017, the annual inflation rate constituted 7.3%, being similar to that of the previous month. The dynamics was determined by the nature of the supply factors, by the effect of a low basic period in 2016 and by the adjustment of certain tariffs to the utility services.

The non-cash foreign exchange market of the Republic of Moldova is determined by the turnover of purchase/sale transactions of the foreign currency that have taken place on different segments of the market, except those performed by the National Bank of Moldova.

The activity of the National Bank of Moldova on the foreign exchange market (foreign exchange interventions) is performed in strict compliance with the monetary and foreign exchange policy objectives.

In 2016, the current account of the balance of payments of the Republic of Moldova recorded a deficit amounting to US$ 285.58 million, down by 38.9% as compared to 2015. The capital account registered a deficit of US$ 20.79 million and the financial account recorded a net inflow amounting to US$ 214.56 million. The international investment position recorded a net debit of US$ 3,550.57 million at the end of 2016, while the gross external debt amounted to US$ 6,235.23 million.

In January-September 2017, the current account of the balance of payments recorded a deficit of US$ 532.56 million (of which US$ -207.62 in Q III 2017), which worsened by 87.7 percent as compared to January- September 2016. The capital account registered a deficit of US$ 17.88 million (of which US$ -5.46 million in Q III 2017) and the financial account recorded a net capital inflow of US$ 301.96 million (of which US$ 129.44 million in Q III 2017). The international investment position of the Republic of Moldova represented US$ -4,201.41 million at the end of Q III 2017, while the gross external debt of the Republic of Moldova reached US$ 6,742.97 million.

In January-September 2017, the current account of the balance of payments recorded a deficit of US$ 532.56 million (of which US$ -207.62 in Q III 2017), which worsened by 87.7 percent as compared to January- September 2016.

The international investment position of the Republic of Moldova recorded a net debit of US$ 4,201.41 million as of 30.09.2017, 18.3 % larger as compared to the end of 2016.

The gross external debt of the Republic of Moldova reached US$ 6,742.97 million at the end of Q III 2017, increasing by 8.1% as compared to the end of 2016.

The decision was made based on the outcomes of the latest macroeconomic analyses, as well as a result of the short and medium-term inflation forecast adjustment against the background of the latent transmission of monetary policy impulses to inflation.

In November 2017, the total amount of net money transfers from abroad made in favour of individuals via licensed banks of the Republic of Moldova amounted to US$ 105.23 million (increasing by 15.7% as against November 2016).

According to its commitments, National Bank of Moldova (NBM) published a detailed summary of the banking fraud investigation received along with the second report of the Kroll and Steptoe & Johnson companies.

IMF Executive Directors noted that the financial stability has been maintained, while the resolute cleansing of the financial sector, along with broader reforms, are vital for faster growth and poverty reduction.

In November 2017, weighted average interest rate on new loans extended in domestic currency recorded 9.88 percent, having decreased by 2.68 percentage points compared to the same period of the previous year.

In November 2017, the monetary base increased by MDL 311.8 million (0.8 percent) compared to the previous month, and totaled MDL 37,414.9 million.

The activity of the National Bank of Moldova on the foreign exchange market (foreign exchange interventions) is performed in strict compliance with the monetary and foreign exchange policy objectives.

The non-cash foreign exchange market of the Republic of Moldova is determined by the turnover of purchase/sale transactions of the foreign currency that have taken place on different segments of the market, except those performed by the National Bank of Moldova.

In November 2017, the annual inflation rate dropped to 7.3%, having decreased by 0.6 pp. compared to the previous month.