MDL - Moldovan Leu

History of the Moldovan Leu (MDL)

The Moldovan Leu is the official currency introduced in 1993. The name of the currency means "lion" and is derived from the Dutch thaler.

From 1918 to 1940 and again from 1941 to 1944, when Moldova was part of Romania, the Romanian leu was used in the eastern part of the vast Moldovan region of Romania. The Moldovan Leu was established on November 29, 1993, after the collapse of the Soviet Union and the establishment of the independent Republic of Moldova. The name "Leu" originates from the historical currency of Romania, symbolizing the historical relationship between Moldova and Romania.

Initially, the exchange rate was set at 1 Leu for 1,000 rubles. The issuance of the Leu was accompanied by economic reforms aimed at stabilizing the national economy.

In Transnistria, a breakaway state not recognized but internationally acknowledged as part of Moldova, the Transnistrian ruble is used as an alternative currency. However, this currency is not recognized by Moldova or any other country.

Moldovan Leu (MDL) Denominations

The currency The Moldovan Leu is currently in circulation with two types of currency: coins and banknotes, with denominations such as:

• Banknotes: 1, 5, 10, 20, 50, 100, 200, 500, 1000 lei

• Coins: 5, 10, 25, 50 bani, 1 leu, 2, 5, 10 lei

Moldovan Leu coins

The Moldovan Leu coins are part of the official currency system of the Republic of Moldova and are currently in circulation alongside banknotes. These coins are widely used in small transactions and come in various denominations. Moldova's coins are issued with a simple design but reflect the cultural and historical symbols of the country.

A series of aluminum coins, primarily small denomination coins, were put into circulation starting in November 1993. The second series of coins, which includes higher denomination coins, was issued in 2018. Most of the Moldovan coins are minted at Monetăria Statului in Romania.

• November 1993: The first coins were issued with denominations of 1, 5, 25, and 50 bani and 1 and 5 lei.

• In 1994, the 1 and 5 lei coins were withdrawn from circulation due to low quality and many counterfeit coins.

• April 1996: The 10 bani coin was introduced.

• In 1997: The National Bank of Moldova replaced the existing 50 bani aluminum coins with new coins made of brass-plated steel, featuring a new design and improved security.

• February 2, 1998: The new 50 bani coin was put into circulation, and the old 50 bani coin was withdrawn and canceled on January 1, 1999.

• In 2017: The 1 and 5 lei coins, as well as the 2 and 10 lei coins, were reissued.

• February 28, 2018: The new coins were put into circulation. 

Moldovan Leu banknotes

The Moldovan Leu banknotes have two series of issuance, with the first series existing only for a short period and including denominations of 1, 5, and 10 Lei. The front of all the banknotes in this series, as well as all the banknotes issued thereafter, depict the portrait of Ștefan cel Mare (Stephen the Great, also known as Stephen III of Moldavia), the famous prince who ruled Moldavia from 1457 to 1504.

Moldovan Leu banknotes before 2015 were quite unique compared to other countries as they did not use intaglio printing technique. The main security features in the early stages included a watermark of Ștefan cel Mare, a solid security thread, and a transparent registration device.

By 2015, the National Bank of Moldova began applying intaglio and relief printing techniques to denominations from 10 to 500 Lei, while also updating more modern security features. However, the 1,000 Lei banknote retains its original design and security features.

On December 31, 2019, according to the currency conversion service XE.com, the 1,000 Lei note was worth 51.60 €.

The improvement of security features reflects Moldova's efforts to protect the value of its currency and enhance the safety of its national monetary system.

Moldovan Leu (MDL) exchange rate

The Central Bank of Morocco is implementing a managed floating exchange rate policy for the MAD. This policy is based on a currency basket of the countries that trade and invest with Morocco. The main objective is to maintain exchange rate stability and control inflation, while also promoting economic growth.

History of Moroccan Dirham (MAD) exchange rate

• In 1882, the dirham officially became part of the new monetary system, subdivided from the Moroccan rial with an exchange rate of 500 Mazunas = 10 dirhams = 1 rial.

• 1960: Morocco regained independence from France, and the Dirham was reintroduced on October 16, replacing the franc as the main currency. During this period, the franc continued to be the main currency. During this period, the franc continued to circulate alongside the dirham until 1974, with an exchange rate of 1 dirham = 100 francs.

• 1980 – 2000: Morocco adopted a regulated floating exchange rate mechanism. During this period, the central bank intervened to adjust the exchange rate in order to stabilize the economy.

• Period 2000 – present: Morocco has continued to implement a managed floating exchange rate policy, while the central bank adjusts the exchange rate as necessary.

Moroccan Dirham (MAD) exchange rate

Moldova applies a managed floating exchange rate regime for the Leu. This means that the exchange rate is determined by market supply and demand, but the National Bank of Moldova (NBM) can intervene in the foreign exchange market when necessary to prevent excessive fluctuations in the value of the currency. The NBM's goal is to maintain stability, control inflation, and support sustainable economic growth.

The value of the Leu is influenced by many factors such as the trade balance, inflation rate, foreign investment, and remittances from Moldovans working abroad, which are an important source of income for the national economy.