Skopje, 31 December 2022

As we countdown the last hours to the New 2023, we remember all the events that marked the passing year and the things we will remember it for.  In 2022 we marked the 30th anniversary of monetary independence, 30 years of building one of the pillars of the statehood.  In conditions of numerous crisis episodes and historic ordeals that we have witnessed in the past three decades, the monetary sovereignty maintenance undoubtedly required great commitment, professionalism and leadership by the central bank, as well as support from other social stakeholders.  Following the acta non verba principle, we built this institution step by step, investing in its human potential, without which the monetary stability maintenance and strengthening would be impossible. We maintained the denar stability, one of the symbols of our statehood and the anchor of stability of our economy.

Just as there are two sides to a coin, every period has its good and bed sides.  Thus, unfortunately, the year of 2022 will be historically remembered as another crisis year-a year in which a war started on European soil, a year of energy crisis, a year in which the world registered one of the highest inflation rates in the past few decades.  Therefore, all central banks, including ours, changed the long-time course of monetary policy and started the cycle of its tightening. 

The aim of these changes is to stabilize the price growth, to prevent a decrease in the citizens’ purchasing power and to ensure predictability in making decisions.  In fact, we have done this successfully in the past three decades, a period that registered higher inflation rates in our country only on few occasions.  These episodes, like the current one, were mostly a reflection of external shocks which affected our small, open and energy dependent economy, as well as of structural weaknesses of the economy that were not given adequate attention in the past decades.  Over the years, the National Bank has successfully responded to these challenges and with its measures and policies consistently adhered to its goals- a stable currency and stable prices.

We are closely monitoring this crisis situation and we are prepared to undertake further steps to ensure the medium-term price stability, which is also a prerequisite for sustainable economic growth and better life of citizens. Next year we expect a gradual slowdown of the inflation, which would return to the historic rates of around 2% in the medium term.

In concluding I would like to point out that this year has taught us that we should think and act one step further- the world faces and will face major changes, among other climate and energy challenges, as well as digitalization.  It is more than obvious that the main emphasis should be placed on sustainability- sustainable energy, sustainable agriculture, sustainable finance.  This requires structural reforms which will strengthen the economic resilience, hence we, the policy makers, should think and act responsibly, strategically and sustainably.

I wish you all a successful and much better 2023!