Today we mark the 25 anniversary of monetary independence of the Republic of Macedonia. The adoption of the legal acts on 26 April 1992 in the Macedonian Parliament was a prerequisite for development and implementation of an independent policy by the Central Bank as the monetary authority of a sovereign and independent Republic of Macedonia
Today we mark the 25 anniversary of monetary independence of the Republic of Macedonia. The adoption of the legal acts on 26 April 1992 in the Macedonian Parliament was a prerequisite for development and implementation of an independent policy by the Central Bank as the monetary authority of a sovereign and independent Republic of Macedonia. The monetary independence took place shortly after the historic independence referendum.Today, we remember that the monetary independence took place against the background of extremely difficult economic circumstances, which were the result of the inherited concerns by the former social system and market narrowing caused by series of armed conflicts and sanctions associated with the states of the region. Most of the decisions made during that extremely complex period represent real long-term solutions, wherein normally and quite naturally, the first issue of the Macedonian denar is pointed out. Immediately after declaring the denar as the currency of the Republic of Macedonia on 26 April 1992, within only few days, the Yugoslavian dinars were replaced by Macedonian denars, temporarily introduced as coupons. The final banknotes and coins were introduced almost a year later, in May 1993, when the coupons were gradually withdrawn. Simultaneously with the monetary independence, the first anti-inflation program in the independent Republic of Macedonia was implemented. Despite the difficult circumstances, the inflation rate was decreasing during almost half year, but due to the vote of non-confidence of the Eexpert government, the practical application of the program was interrupted. The implementation of the new stabilizing measures started during 1993, which for the first time were arranged by IMF and World Bank. Macroeconomic stabilization was already ensured by 1995, whereby single-digit annual inflation rate was realized, stable exchange rate after the switch of the strategy for exchange rate targeting, strengthened foreign reserves, control over monetary aggregates and consolidation of the fiscal sector.The exchange rate of the denar was maintained at the same level for twenty years, at first against the Deutsche mark, and from January 2002 against the euro. This is even more important because it is maintained in conditions of full liberalization of the current account and largely liberalized capital and financial account of the balance of payments. In the past two decades, the Macedonian economy registers an average inflation of 2%, which is on the level of the defined medium-term objective of the euro area. Success is largely due to the fact that the National Bank is established as an independent institution in conducting monetary policy and selecting instruments for monetary regulation, with the main purpose of achieving and maintaining price stability. The other objective of the Bank, subordinated to the primary objective, is to contribute to the maintenance of a stable, competitive and market-based financial system. The NBRM also supports the general economic policies without jeopardizing the achievement of the ultimate objective and in line with the principle of an open market economy with free competition.Today Central Bank has contemporary monetary tools, advanced macroeconomic forecasting, modern system of foreign reserves management, operational and upgraded payment system, rich statistical base, advanced research activity, risk-based supervision, modern banking regulation harmonized with the Basel Principles and application of standards in all areas of operation. The National bank cooperates with the European Central Bank and other institutions and bodies of the European Union. The National Bank continues to operate as independent, transparent and socially responsible institution, which, with all intellectual capacity remains open to cooperate with all other entities within the scope of its powers and focused on further development of the banking and financial system and the economy as a whole.The National Bank of the Republic of Macedonia, as in the past, remains dedicated to achieving the legal objectives to maintain price and financial stability by undertaking all available measures and instruments in order to support the macroeconomic stability of the economy.
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