Senior officials of the International Monetary Fund, the World Bank and the European Union, as well as the Governors of the NBM and the NBR, together with economic experts discussed in a roundtable online the role of central banks in modernizing society and the challenges they face in emerging economies.

In the opening of the event, Octavian Armașu, Governor of the National Bank of Moldova, stressed that due to the NBM's ability to make assumed and uninfluenced decisions, the banking sector was successfully reformed. "The National Bank is still dedicated to this goal - to maintain a secure, stable and predictable monetary environment and financial system that allows the population and economic agents to care about other issues, to know that the monetary policy part is in the secure hands and all this, of course, within the limits of the mandate, resources and independence of the National Bank", mentioned Octavian Armașu.

In his turn, the Governor of the National Bank of Romania, Mugur Isărescu, noticed "from the position of veteran partner of the National Bank of Moldova, the remarkable progress that the NBM has made on the road to a European-type central bank." The NBR official referred to the management of foreign exchange reserves: "The reallocation of reserves for discretionary use and their monetization strongly erodes these essential balances, significantly affects the functionality of markets and the credibility of the central bank and any government, ultimately to the detriment of society", and also , the importance of the independence of a central bank: "By affecting the independence of the central bank, in favour of political decisions aimed at short-term electoral gains, the real costs will be borne economically and socially, in the long run, by the whole country."

At the same time, Rodgers Chawani, Resident Representative of the International Monetary Fund in the Republic of Moldova, referred to the reform process in our country: “As soon as revitalization becomes well rooted, policies will have to move to support economic growth. Governance and institutional reforms, if implemented decisively, could define the trajectory of the economic recovery. The success of the reforms will depend on an appropriate balance between the independence of the NBM and accountability.”

In the same vein, Anna Akhalkatsi, Director of the World Bank's office in Moldova, stressed that the independence of the biennial bank is one of the key pillars of a country's governance framework, as it builds confidence and facilitates investment in a country and its financial system. "Isolating central banks from any kind of political interference is important, especially in times of crisis, when the country is facing political, financial or economic turmoil… In such circumstances, it is essential that central banks be guided by their core mandates, while the economic incentive could only be justified if it does not run counter to inflation targets or contribute to the accumulation of systemic risks in the financial sector."

Peter Michalko, Head of the European Union Delegation to the Republic of Moldova, mentioned the significance of the reforms carried out and that Moldova has improved the transparency and stability of the banking sector, which has led to direct investment in the sector. "The EU has supported the NBM in developing new banking legislation in line with Basel III standards and strengthened its independence.… It is important that the necessary reforms continue and that the Moldovan banking sector remains financially stable, transparent, reliable and attractive for foreign investment," pointed out the EU Ambassador.

The theme of the roundtable included several essential aspects, including that of the macro-monetary balance. "The central bank has the main role in ensuring the macro-monetary balance," said the First Deputy Governor of the National Bank of Moldova, Vladimir Munteanu, - the condition of the economy in which the demand and supply of money equalize dynamically without being the source of disturbances in the rest of the economy and thus, facilitating an optimal sustainable economic development in time." The NBM First Deputy Governor noted that ensuring the macro-monetary balance involves a complex set of monetary, macroeconomic and prudential measures and policies that are ordered, synchronized and applied to a certain extent for maximum effect.”

The participants in the roundtable exchanged ideas, based on standards and expertise, qualifying the topic on the role of central banks in the face of challenges in emerging countries as a priority on the agenda in the work of the respective monetary authorities.

In this context, Vytautas Valvonis, the European Union's High-Level Adviser, said: "The institutional, functional, personal and financial independence of the supervisor or central bank is the key to a stable, reliable, competitive and efficient financial market that serves the economy and the wellbeing of society.”

Experts from IDIS Viitorul, “Expert-Grup”, the Institute of European Policies and Reforms etc. also presented their position at the roundtable on “The role of a central bank in modernizing society - challenges in emerging economies”. They had presentations on the independence and role of the NBM in the context of the pandemic crisis; transparency and quality of shareholders - crucial for strengthening confidence in the banking system of Moldova; the risks of lending to the state by a central bank, as well as other topics of public interest.

The theme of the event was the agenda of priorities accepted internationally by the monetary authorities and highlighted the confrontations in this regard in emerging countries, along with best practices.

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The recording of the event can be watched here: