Reports on the monetary, foreign exchange and supervision activity of the National Bank of the Republic of Macedonia in 2001 were adopted
Skopje, 14 May 2002
Press release of the NBRM
Reports on the monetary, foreign exchange and supervision activity of the National Bank of the Republic of Macedonia in 2001 were adopted
The National Bank of the Republic of Macedonia Council held its XCIX session on 14.05.2002, during which several reports on the monetary, foreign exchange and supervision area were reviewed and adopted.
The National Bank of the Republic of Macedonia Council has reviewed the Bank’s Annual Report for 2001, stating that the deteriorated security in 2001 had unfavorable impact on the macroeconomic achievements of the Macedonian economy. Thus in 2001, the 5-year upward trend of GDP was ceased, and the evaluated real drop of GDP equaled 4.6%. Although facing such complex circumstances, the National Bank of the Republic of Macedonia succeeded to maintain the strong commitment to fulfill its obligation defined in the Constitution of the Republic of Macedonia and the Law on the National Bank of the Republic of Macedonia, and that is maintenance of the price stability, i.e. the Denar foreign exchange rate, as a main nominal anchor in the economy and as proved best environment in a small and open economy as it is the Macedonian one, for accomplishing its economic activities. The average inflation rate in 2001 equaled 5.5%.
In 2001, the budget policy had to be expansive due to the defense of the country. In addition, because of the security developments, the citizens made run on banks that created pressure on the foreign exchange market. In such conditions, the monetary policy carried the largest part of the burden in defending the foreign exchange rate and in maintaining the price stability i.e. in providing the macroeconomic stability, using exclusively market instruments. Despite the fact that the expected inflow of funds for supporting the balance of payments due to the deteriorated security in the country and termination of the arrangements with the international financial institutions did not occur, the National Bank of the Republic of Macedonia succeeded in regular and timely settlement of its external liabilities.
In 2001, the payment operations reform was successfully finalized, and thus the payment operations were transferred to the banks at the beginning of 2002, while the inter-bank settlement is conducted with the NBRM mediation.
The Council reviewed the Report on the Supervision and Control Activities of the National Bank of the Republic of Macedonia in 2001, with the emphasize being put on the important role of the National Bank, which in correlation with the banks did not allow systemic banking crisis despite the worsened security in the country. The Council members stated that the Republic of Macedonia is one of the rare transitional countries that succeeded in avoiding a systemic banking crisis.
The Council members stressed that the annual reports of the National Bank of the Republic of Macedonian are factual, comprehensive and professionally prepared materials, and were unanimously adopted.
Governor’s Office