Moldova has officially joined the Single Euro Payments Area (SEPA), a move that will reduce transaction costs for Moldovan citizens and businesses, News.az reports citing Xinhua.
The accession, which comes after Brussels’ decision on Thursday, will lower fees on international transfers, benefiting Moldovans working abroad and sending money home, said Moldova’s central bank Governor Anca Dragu on the same day.
SEPA membership is expected to save Moldova around 12 million euros (13 million U.S. dollars) annually, with potential savings reaching 20 million euros (21.7 million dollars) in the medium term, according to Dragu.
For businesses, SEPA eliminates extra fees and delays in euro transactions, making Moldovan exports, 60 percent of which go to the EU, more competitive.
Moldovan banks will now undergo technical upgrades to integrate into SEPA, with full implementation expected in the coming months.
SEPA is a European system that standardizes euro payments across EU countries and other participating territories, removing distinctions between domestic and cross-border transactions.
Moldova applied to join SEPA in January 2024.