Skopje, 26 October 2022 

Being small and open, our economy is affected by the pressures of the current global crisis. However, macroeconomic stability and the stability of the financial sector have been maintained, with the sound banking sector providing the necessary support to both the corporate and the household sector. The National Bank is gradually normalizing the monetary policy, in order to stabilize inflation expectations and maintain medium-term price stability. This, among other things, was discussed at the meeting between the Governor of the National Bank, Anita Angelovska Bezhoska and the Ambassador of the Republic of France, Cyril Baumgartner, the new Head of the Regional Economic Department at the Embassy of the Republic of France in Belgrade, Pierre Grandjuan, and thе Deputy Head for the Western Balkans, Celine Hericher.

Governor Angelovska Bezhoska said that the aggravation of geopolitical tensions at the beginning of the year led to pronounced upward pressures on inflation, as well as pressures on the foreign exchange market due to the growth of energy prices and the economy's high energy import dependence. In such circumstances, the National Bank, like almost all central banks in the world, started with a gradual increase in the policy rate, as well as with taking targeted measures in order to encourage both the savings in domestic currency and the financing of projects for renewable energy sources. At the meeting, it was concluded that the stability of the exchange rate has been successfully maintained, and the foreign reserves are at the pre-pandemic level, providing support for the current strategy. Regarding the financial sector, its liquidity and capitalization were singled out as factors of its resilience and capacity to provide sufficient credit support. However, given the current risks, the need for vigilant monitoring in this segment was once again emphasized. The recent introduction of a countercyclical capital buffer was specified as an appropriate measure, thus improving further the the banks' resilience to shocks.

The Regional Economic Department of the Embassy of the Republic of France in the Republic of Serbia covers the countries of the Western Balkans. The main mission of the Department is to monitor and analyze financial and economic situations in the region, monitor economic policies, foreign trade, public finance and the financial sector, as well as to work on adjustment and promotion of the economic relations between France and the countries of the region. The Department also coordinates bilateral relations with countries and provides support for the international development of companies, especially by monitoring large projects.