VOLATILITY OF EXCHANGE RATE IN THE CONTEXT OF FOREIGN TRADE

Abstract

Moderate fluctuation of the exchange rate, basically in its floating regime is considered normality. Meanwhile,excessive volatility of the exchange rate is an issue for many countries. Its elimination is directed to foreign trade, which, through essential exports, followed by significant currency inflows, contribute to the stability of exchange rates. Unfortunately, Moldova’s foreign trade has become a key factor in maintaining the stability of foreign exchange.

Keywords

• currency
• foreign trade
• exports of goods
• imports of goods
• trade balance
• foreign exchange intervention
• official exchange rate
• volatility of foreign exchange rate