Skopje, 25 November 2004

Press release of the NBRM

Today, the National Bank of the Republic of Macedonia Council has held a session at which it discussed about several reports and decisions in the monetary and supervisory area and the regular operations of the National Bank. The Council discussed about and adopted a Decision on the monetary policy objectives for 2005 and the Monetary Policy Projection for 2005.

According to the Decision on the monetary policy objectives for 2005, the primary objective of the monetary policy of the National Bank in the next year is the maintenance of price stability. The projected inflation rate for 2005 equals 1.5%. The National Bank will achieve its primary objective by maintaining a stable nominal exchange rate of the Denar against the Euro. The maintenance of an adequate level of gross foreign reserves will be an essential determinant of the monetary policy. Based on the assumptions for the real GDP growth, the projected developments in the fiscal sphere and in the balance of payments, the annual growth rate of the money supply M2 - Denar component is expected to equal 15.6% and the total credits extended to the private sector to go up by 12.8%. The NBRM will support the macroeconomic policy of the Republic of Macedonia through its monetary policy for 2005, without jeopardizing the achievement of the primary objective of the monetary policy.

With a view to inducing the development of the financial markets in the Republic of Macedonia, the National Bank Council adopted a Decision according to which the banks licensed for conducting international operations and intermediary operations with negotiable securities, will have to establish electronic systems for conducting international payment operations, settling financial transactions and accessing to the information on the financial markets in the Republic of Macedonia and abroad (Reuters, Bloomberg, Tenfore, SWIFT) within one year. Furthermore, the banks will be required to hire foreign exchange dealers with passed professional exam and acquired respective certificate (ACI dealing certificate). The adopted amendments will create conditions for establishing a centralized system of data on the operations on the foreign exchange market and the money market and on the trade on the secondary short-term securities market in the Republic of Macedonia. It will help the economic agents that participate in the operations on the financial market be more informed.

Governor's Office