The National Bank of the Republic of Macedonia Council discussed about several issues from its scope of operations at today's session.
Skopje, 25 August 2005
Press release of the NBRM
The National Bank of the Republic of Macedonia Council discussed about several issues from its scope of operations at today's session.
The Council ascertained that the maintenance of the price stability in the Republic of Macedonia continued in the January - July 2005 period, with the average inflation rate equaling 0.3%. Also, the consumer price index went up by 1.7%, on average. On annual basis (July 2005 / July 2004), the broadest money supply M4 was by 14.2% higher, with simultaneous growth being registered in the total bank credits to the private sector of 22.4%, showing further intensive credit expansion of the banks. At the end of July 2005, compared to December 31, 2004, the gross foreign reserves surged by Euro 93.7 million, primarily owing to the high net purchase of foreign currency on the foreign exchange market by the NBRM. In the first five months of 2005, the balance of payments current account deficit stood at Euro 82.0 million, which, compared to the same period of 2004, dropped considerably by Euro 91.4 million as a result of the improvement registered in all its main components, particularly the private transfers and the foreign trade.
The Council adopted the Information on changing the methodology for calculating the real effective Denar exchange rate (REED). Thus with a view of improving the methodology, changes have been made by using a new reference period for calculating the weight (the current foreign trade weight structure from 1998 was replaced with the shares of the most important trading partners in the foreign trade of the Republic of Macedonia in 2003) and Serbia and Montenegro were included in the calculation of the REED. These methodological changes in the construction of the REED index of the Denar are aimed at obtaining high-quality indicator for the price competitiveness of the Macedonian products on the foreign markets.
Governor's Office
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