Moldova is among the smallest and poorest countries in Europe, but it pursues ambitious goals - including rapid adoption of the euro. The governor of the Central Bank, Anca Dragu, is a determined woman with clear ideas for the future.
At the end of last year, Moldova voted to change the constitution. It was supposed to write that the country sets itself the goal of joining the EU. The referendum held on the issue showed that a majority of 50.46% supported this goal.
Moldova looks to the euro
And while it is still unclear whether Moldova will join the EU before 2030, the governor of the Central Bank of the Eastern European country is already looking to the euro, writes “Frankfurter Allgemeine Zeitung“ (FAC) in a report. “Moldova can be a good example of a rapid accession to the EU, but also of a smooth and rapid introduction of the euro, believes banker Anca Dragu.
At the end of last year, the government in Chisinau adopted the euro as the reference currency of the Moldovan leu instead of the dollar. Dragu says this is a reaction to the growing importance of the European Union for trade in the country. As a result, Moldova will save eleven million euros a year on currency transactions. “This is money that remains in the pockets of our citizens and our businesses“, Dragu explains to the German publication. The Ukrainian central bank also wants to follow this example.
Another important step that Dragu has taken is the inclusion of Moldova in the SEPA payment system, writes FAC and recalls that by the autumn of this year Moldova and North Macedonia will become the 39th and 40th members, respectively. Although the decision is technical, it is also highly political, the media outlet notes. Inclusion in the payment system will drastically reduce the costs of transfers, and in a country where remittances from emigrants account for one eighth of the gross domestic product (GDP), this is of great importance, the German publication comments.
Moldova closes a dark page in its history
Dragu says that fees and commissions for international transfers are already decreasing. She is “optimistic that in the coming months the fees will decrease from the current 30, 40, 50 or even 200 euros per transfer to no more than one to three euros“.
The SEPA membership also means that the country's banks have met security criteria in terms of the fight against money laundering and the financing of terrorism. Moldova has a rather dark history in this regard. Until a few years ago, the former Soviet republic was considered a center for money laundering, mainly of Russian money.
A case in which oligarchs, together with corrupt politicians and officials, stole one billion dollars from the accounts of three banks - an amount equivalent to one eighth of the country's GDP - has become an international scandal. The "robbery of the century" has not yet been revealed, the accused are hiding abroad, the commissions are investigating, but the money has already disappeared, FACS recalls. Among those involved in the scandal is oligarch Ilan Shor. After hiding in Israel, in 2024 he received Russian citizenship. From abroad, the oligarch controlled his pro-Russian party "Shor", through which he organized protests against the pro-European government of Mia Sandu. In June 2024, the Constitutional Court of Moldova banned the party.
Who is Anca Dragu?
Due to the scandalous theft, Anca Dragu's predecessor was dismissed from office. She took over the leadership of the Central Bank with impressive experience gained at the National Bank of Romania, the International Monetary Fund and the European Commission. Dragu was also Romania's Minister of Finance and later - President of the Senate.
After changing her Romanian citizenship in December 2023 and taking office in Moldova, she immediately began to act - submitted the country's application for SEPA, introduced strict measures in the banking sector, dismissed employees with a questionable reputation and began to fight inflation. The stability of Moldova's financial system is currently highly rated by the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund. However, inflation remains a problem, and the most serious contributor to it was the suspension of Russian gas supplies in January this year - electricity prices increased by nearly 70%, and heating - by 40%. Moldova is now actively working to build better energy ties with Romania. If Chisinau is completely independent from Russia, price pressure will decrease, the economist is convinced.
"Part of the European family"
The fact that the head of the Moldovan Central Bank is a woman who has worked in leading institutions on which the country's development depends certainly does not harm Moldova, summarizes Andreas Mim for FAC. Anca Dragu is a supporter of European integration, she also worked on the integration of Croatia. Now she plans to do the same for Moldova - in the European Union, the eurozone and Schengen. “We are part of the European family and we are determined to stick to it and continue on the path we have chosen“, she tells the German publication.