Skopje, 28 December 2021 

The exchange rate has been stable for years now, and will remain so in the future.  The high level of foreign reserves, as well as number of instruments which the central bank will not hesitate to use to defend the exchange rate are guarantee for its stability, said the National Banks’ Governor Anita Angelovska Bezhoska in an interview with TV 24.  She emphasized that a stable Denar exchange rate is the most optimal strategy appropriate for our economy. 

“This is not only the position of the National Bank. It is also the position of the international financial Institutions. The International Monetary Fund has recently clarified its position, emphasizing that the Denar exchange rate is stable, and that its stability is the key anchor of the overall macroeconomic stability, as well as that the central bank holds adequate level of foreign reserves to defend the exchange rate stability” the Governor said. 

The Governor also pointed out that the exchange rate stability is a key component for the overall macroeconomic stability in our country and is a public good whose benefits are enjoyed by every citizen.  She emphasized that one of the challenges the central bank has faced with are the speculations, which unfortunately occurred in several occasions. She also pointed out that every citizen has a social responsibility towards public good, and spreading speculations is in no one’s interest, on contrary, it is to the detriment of the citizens.

The Governor points out that the foreign reserves, which are the main instrument in defending the exchange rate, are maintained at the historically highest level. 

“According to the latest available data, the foreign reserves equal Euro 3.5 billion, or about 30% of the GDP. For illustration, in the period 2008-2009, i.e. during the global crisis which we also successfully dealt with and kept the stability of the Denar, the level of foreign reserves was Euro 1.4 billion, while their relative share in the gross domestic product was around 22%. All foreign reserves adequacy indicators show an appropriate level of foreign reserves” says Angelovska Bezhoska.

The Governor adds that when the pandemic occurred in 2020, for the first time in the history, the National Bank launched a regional initiative for the whole Western Balkans, in order to provide access to foreign currency liquidity from the European Central Bank. This means that we if need additional foreign currency liquidity, we could turn to the European Central Bank for support.  However, there is no such need since we hold an adequate level of foreign reserves, emphasizes the Governor.