North Macedonia National Bank: denar, banking system stable

“Domestic demand is the main factor of economic growth, in circumstances when the monetary policy is still relaxed, in order to provide enough room for continuous economic recovery,” according to the conclusions for the credit rating agency Standard & Poor’s. [Shutterstock / Erik Cox Photography]

The denar exchange rate is stable, the foreign reserves increased last year, and the banking system remains stable, the National Bank of the Republic of North Macedonia reported on Saturday.

“Domestic demand is the main factor of economic growth, in circumstances when the monetary policy is still relaxed, in order to provide enough room for continuous economic recovery,” according to the conclusions for the credit rating agency Standard & Poor’s.

The report gave North Macedonia a “BB” credit rating with a stable outlook.

The report also states that there are no changes in the fixed exchange rate of the denar, while the foreign reserves increased by 8.4% last year.

In the meantime,  the International Monetary Fund (IMF) provided a positive assessment of the National Bank’s work.

“The National Bank conducts an appropriate relaxed monetary policy because inflation is primarily a global phenomenon. In accordance with the global trends, the higher inflation will probably be maintained longer in relation to the previous expectations, dropping in the second half of 2022. In the coming period, the National Bank should carefully monitor the developments and potential risks, emphasising the readiness to respond if necessary,” the IMF said.

The national bank’s governor, Anita Angelovska Bežoska, said that geopolitical developments might impede the recovery of the global economy. Still, North Macedonia’s direct exposure to the Russian and Ukrainian economies is small, and no significant direct effects are expected [in the case of war]. The biggest problem would be the EU’s growth slowing as the bloc is the most important trading partner for Skopje.

Subscribe to our newsletters

Subscribe