Skopje, 29 October 2020 

All indicators confirm that foreign reserves are in extremely good condition - at a high level and constantly in the safe zone. At the end of September, they amounted to Euro 3.480 billion, which is by nearly Euro 400 million higher compared to the end of February, before the outbreak of the COVID-19 crisis in our country. And, not only the nominal amount, but also the relative, internationally accepted adequacy indicators show that the level of reserves is appropriate and protects the Denar exchange rate.

This was stated by the National Bank Vice Governor Emilija Nacevska, in an interview with the SBS Radio from Australia.

"Since the beginning of the third quarter, the foreign exchange market developments in the country have been constantly improving, fed not only by seasonal factors, but mainly by the better perceptions of citizens, shown through the increased supply of foreign currency. In such circumstances, the foreign exchange liquidity of the banking system continues to improve, which significantly reduces the need for National Bank interventions. "In September and October, the National Bank has been only occasionally present on the foreign exchange market by selling foreign currency to market makers, with the amount of interventions being the lowest since the beginning of the crisis", Nacevska said.

In the interview, besides the purpose of foreign reserves, Vice Governor Nacevska also refers to the principles of security, liquidity and profitability, by which the National Bank is guided in this order when managing foreign reserves.

Nacevska notes that when it comes to the value of the domestic currency, there is no dilemma or compromise - the denar is and will remain stable.

The interview is available here.