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Moldova's New Government Tries To Stabilize Troubled Currency

Moldova's new government is trying to stabilize the country's currency, which plummeted 25 percent this week amid concerns about the financial and political system.

The leu currency recovered 5 percent on February 19, a day after parliament appointed pro-European Union businessman Chiril Gaburici as the new prime minister.

In his first Cabinet meeting, Gaburici said on February 19 that Moldova should begin talks with the International Monetary Fund.

Moldova’s leu currency has been hit by worries that the banking system is in crisis and public finances are in decline.

The country has been struggling to form a government since elections on November 30.

National Bank governor Dorin Dragutanu said the leu's plunge was caused by greater demand for hard currency and a 3 percent drop in remittances and exports during 2014.

The banking system is in crisis due to suspicions of money laundering at three major banks.

With reporting by AP

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