denar, stable banking system – EURACTIV.com

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

“Domestic demand is the main driver of economic growth, under circumstances where monetary policy is further loosened to allow ample room for continued economic recovery,” according to the conclusion for the Standard & Poor’s rating agency.

The report assigned North Macedonia a ‘BB’ credit rating with a stable outlook.

The report also said there was no change in the denar’s fixed exchange rate, as foreign exchange reserves increased by 8.4 percent last year.

Meanwhile, the International Monetary Fund (IMF) has made a positive contribution Evaluation of the work of the National Bank.

“The National Bank conducts an appropriately relaxed monetary policy because inflation is above all a global phenomenon. In line with global trends, the rise in inflation is likely to persist for longer compared to previous expectations, easing in the second half of 2022. Over the coming period, the National Bank should carefully monitor developments and potential risks, in emphasizing preparedness to respond if necessary,” the IMF said.

National Bank Governor Anita Angelovska Bežoska said geopolitical developments could hamper the recovery of the global economy. However, North Macedonia’s direct exposure to the Russian and Ukrainian economies is low and no significant direct effects are expected. [in the case of war]. The biggest problem would be slowing EU growth, as the bloc is Skopje’s most important trading partner.

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