Historical Sketch

In the early 19th century, the Ottoman Empire ceded Bessarabia to Russia. Following the 1917 revolution and attempts at gaining independence, the territory was annexed by Romania, which got recognized by the European powers in 1920, but not by Soviet Russia. During the Second World War, the Soviet Union re-captured Bessarabia and created the Moldovan Socialist Soviet Republic. It also included parts east of the Dniester River, which had formed the Moldovan Autonomous Socialist Soviet Republic within Ukraine. When Germany invaded the Soviet Union in 1941, allied Romania seized back the territory including the Transnistrian part, just to be driven out again by the Red Army in mid-1944. The Moldovan SSR was re-established and remained a part of the USSR until its dissolution in 1991. Then Moldova withdrew from the USSR and declared independence. The parts east of the Dniester River immediately seceded to form the Transnistrian Moldovan Republic (also referred to as Pridnestrovia, derived from the Russian / Ukrainian name). This move has not been recognized internationally.

Monetary History Overview

In June 1992 began the issuance of a transitional currency that circulated alongside the Russian and Soviet money. It was referred to as Moldovan Ruble in the legal texts, but since the paper money did not display any denomination, the name Moldovan Coupon became commonly used. In August 1993, Moldova demonetized the Russian and Soviet currencies, and the Coupon was devalued by 23% against the Russian Ruble. In November 1993, the national currency was finally created. Three zeros were cut from the Coupon, and the Moldovan Leu became the unit. The exchange rate was devalued by 55% against the US Dollar and set to float. It remained stable for some years but depreciated by about 65% in the late 1999s. This was followed by more than a decade of currency stability, which was terminated by an almost 40% devaluation in the mid-2010s. After that the relative currency stability has returned.

Moldova joined the International Monetary Fund (IMF) on 12.08.1992.

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