Template-Type: ReDIF-Paper 1.0

Author-Name: Tanja Jakimova
Author-Name-First: Tanja
Author-Name-Last: Jakimova
Author-Email: jakimovat@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of North Macedonia
Author-Name: Milan Eliskovski
Author-Name-First: Milan
Author-Name-Last: Eliskovski
Author-Email: eliskovskim@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of North Macedonia
Author-Name: Artina Bedzeti Baftijari
Author-Name-First: Artina
Author-Name-Last: Bedzeti Baftijari
Author-Email: bedzetia@nbrm.mk
Author-Workplace-Name: National Bank of the Republic of North Macedonia

Title: Households’ euroization in the Republic of North Macedonia: Is it close or far from the optimal levels?

Abstract: The paper deals with the challenges stemming from the phenomenon of unofficial euroization in the Republic of North Macedonia. It tries to identify the main drivers of the households’ deposit euroization in the Republic of North Macedonia and contributes to the literature by providing an empirical measure of optimal level of euroization. With focus on the household deposits, it is an additional attempt to empirically estimate the optimal level of euroization in the Republic of North Macedonia, following an already published IMF study on this issue. Looking ahead, persistence in stability-oriented macroeconomic policies and measures for promotion of the use of local currency could further support the de-euroization trend in the Republic of North Macedonia.

Length: 25

Creation-Date: 2022

File-URL: https://www.nbrm.mk/content/Households_euroization_in_the_R_N_Macedonia_WP2-2022.pdf

File-Format: Application/pdf

File-Function: First version, 2019

Number: 2022-02

Classification-JEL: classification: C32, E47, E58
Keywords: euroization, local currency, financial stability, monetary policy, prudential policy, Republic of North Macedonia
Handle: RePEc:mae:wpaper:2022-02