Today, the National Bank of the Republic of Macedonia Council held its fourth session where it introduced changes in the operational framework for conducting the monetary policy of the National Bank.
Skopje, 6 April 2012
Press release of the NBRM
Today, the National Bank of the Republic of Macedonia Council held its fourth session where it introduced changes in the operational framework for conducting the monetary policy of the National Bank.
Changes in the operational framework are directed toward its expansion and increased flexibility, while simultaneously further supporting the development of financial markets. In order to support longer-term placements by banks, the National Bank introduces regular weekly repo operations to provide liquidity in the banking system. Regarding the current framework, which offered the opportunity to borrow from the central bank only on the basis of the overnight credit, the regular conduct of repo auctions by the National Bank will allow the use of liquidity at favorable conditions for commercial banks. At the same time, better conditions are created for development of the money market in the country as an important segment of financing in the domestic economy.
For more flexible liquidity management of the banking system, the National Bank introduces seven-day deposit facility, which will be available to banks every Wednesday for placing funds with the central bank on their initiative. The interest rate on the seven-day deposits is set at 2% annually.
For active use of the repo operations, and increased interbank activity, the National Bank reduces the frequency of CB bills auctions to one time within the maintenance period of reserve requirement, and limits the offered amount of CB bills. The maximum interest rate on the CB bills auctions is set at the current level of 4% on an annual basis.
Beside the overnight credit, the interest rate on which decreases from 1.50 to 0.50 percentage points above the interest rate on CB bills, which makes this credit more affordable for commercial banks, the National Bank also introduces an overnight deposit facility, which is available to them every day at an interest rate of 1% on annual basis.
The National Bank Council also reviewed and adopted other regulations within the scope of its operations.
Governor's Office
{{Title}}
{{Intro}}
{{{Content}}}
{{#hasElements Images}}
{{#each Images}}
{{#showInline ShowInGallery IsThumbNail}}
{{{dataImg this params="?width=886"}}}
{{/showInline}}
{{/each}}
{{#each Images}}
{{#showInline ShowInGallery IsThumbNail}}
{{{dataImg this params="?width=200&height=100"}}}
{{/showInline}}
{{/each}}
{{/hasElements}}