Moldova joins SEPA, boosting euro payments and international transfers
On March 6, Moldova was officially accepted into the Single Euro Payments Area (SEPA), marking a historic decision that will greatly enhance the speed, security, and accessibility of euro-based transactions.
This move, announced by Anca Dragu, Governor of the National Bank of Moldova, is set to reduce transaction fees significantly, benefiting both citizens and businesses in the country. For example, Moldovans living abroad will be able to send money home more quickly and affordably, with international transfers of up to 200 euros costing just 1-2 euros or even as low as 50 cents.
For businesses, SEPA eliminates extra fees and delays, making it easier and cheaper to process international payments within the EU. This will help Moldovan companies become more competitive on the global market. According to estimates, Moldova will save about 12 million euros annually through these reforms, with the potential to save up to 20 million euros in the medium term. This economic boost will support the development of local businesses and contribute to a more prosperous economy.
Following the announcement, the country’s leadership shared positive reactions on social media. Prime Minister Dorin Recean described the news as a “great benefit for all citizens sending money to their families in Moldova, as well as for entrepreneurs.” He highlighted that businesses will now be able to make international payments and receive payments with reduced transaction costs and without exchange rate fluctuations, further improving their competitiveness in the European market.
President Maia Sandu also welcomed the decision, noting that, starting this fall, bank transfers to and from the EU will be faster and cheaper.
Whereas fees previously reached tens or even hundreds of euros, now, with SEPA membership, they will be reduced to just a few euros.
The SEPA membership marks a “historic moment” and a clear demonstration that Moldova is ready to align with the highest European financial standards, said Anca Dragu, who is currently in Brussels on a working visit.
This move will ensure Moldovan citizens and businesses access to a faster, safer, and cheaper payment system. It will also help reduce the costs of remittances sent by the diaspora, a crucial aspect for many Moldovan families. Moldova’s economy will thus become more attractive to foreign investors, more resilient, and more prosperous, creating a better life for all citizens. Today’s decision strengthens our irreversible path towards European integration.
It is worth mentioning that the National Bank of Moldova officially submitted its SEPA membership application on January 30, 2024. In the coming period, commercial banks will make the necessary technical adjustments to ensure that euro payments are fast, secure, and significantly more affordable.
Translation by Iurie Tataru
