In this article is a profound analysis of the banking system of the Republic of Moldova. Are given the central bank functions (officially called the national Bank of Moldova) and relationships interchange. It is indicate the primary objective of the National Bank of Moldova and namely to ensure and maintain price stability. Are given annual inflation rates during the years 1995-2008. A deep analysis is done in this article on the intsruments of monetary policy promoted by National Bank of Moldova, such as: policy rates, open market operations, overnight loan and overnight deposit used by the National Bank of Moldova as intsruments of monetary policy, compulsory reserve rate and other monetary intsruments. All of these monetary policy intsruments used by the National Bank of Moldova aimed „sterilization temporary excessive liquidity” and consequently reduce inflation.