Transnistria is situated in the land that divides the Dniester river and the Moldovan-Ukrainian border. This unrecognized breakaway state is administered by the Pridnestrovian Moldavian Republic. The region has a mixed economy based on steel, electricity, and textile production that account for roughly 80% of the total industrial output. Its economy is often referred to as a mafia state, dependent on gunrunning, and black-market that are denied by the region’s government.
Following the breakdown of the Soviet Union, Transnistria was inclined to revert to Leonid Brezhnev’s style but eventually headed toward a market economy. In 2007, the government budget was USD 246 million with an estimated deficit of roughly USD 100 million. Its debt to Gazprom for acquiring natural gas has surged to USD 1.3 billion. In November 2007, the state’s public sector debt was USD 1.64 billion. In an interview with Yevgeny Shevchuk in 2007, the 2nd president mentioned that the nation has a distressed economic condition, however, the situation isn’t considered a crisis.
Transnistria’s official currency is the Transnistrian ruble which is divided into 100 kopecks. The state has its own central bank, the Transnistrian Republican Bank that’s responsible for issuing Transnistrian currency. Before the introduction of the Transnistrian ruble, Soviet ruble banknotes were circulating across the nation. To protect its financial system, the state released provisional banknotes in July 1993. These notes were Russian and Soviet banknotes stamped with an image of General Alexander Vasilytevich Suvorov who was the founder of Tiraspol. These banknotes were replaced by coupons on August 22, 1994, at a rate of 1 to 1,000 old rubles. These coupons feature Alexander Suvorov on the obverse and the Parliament building on the reverse.
A new family of banknotes was introduced on December 22, 2007, bearing similar designs as with the previous issues. These banknotes have improved anti-counterfeiting features such as a windowed security thread.