The National Bank of the Republic of Macedonia Council held a session today, with several issues within its operating area being discussed at.
Skopje, 25 September 2008
Press release of the NBRM
The National Bank of the Republic of Macedonia Council held a session today, with several issues within its operating area being discussed at.
The Council reviewed and adopted the Report on the management of foreign reserves in the first half of 2008. The council determined that in the first half of 2008, the foreign reserves of the Republic of Macedonia registered an increase of Euro 19 million and at the end of the first half they amounted to Euro 1,543.4 million. Since the beginning of the year, the dominant instruments foreign reserves are placed in are the debt securities (bills and bonds) issued by the governments and government organizations from the Euro zone countries and the USA, debt securities of the international financial institutions, as well as other fixed profit bearing instruments. The foreign reserves' placement in high quality securities enabled lower credit risk exposure, without lowering the placements' profitability. The dominance of the Euro in the currency structure resulted in investment of the largest portion of the foreign reserves in the Euro zone countries, with the credit exposure criteria being adhered to. On the basis of foreign reserves management in the first half of 2008, revenues in the amount of Euro 24.1 million were registered.
On the session held today, the NBRM Council was informed on the latest macroeconomic developments. The annual rise in the prices in August equaled 8.6%, which is significant slowing down relative to the previous month (9.5%) and mainly reflects the higher comparison base (having in mind that the enhanced growth of the food prices commenced in August 2007), with slight decrease in the core inflation also being recorded. In conditions of drop in the general price level on a monthly basis, (in July and August) and decrease in their annual rise, decline was also recorded in the average inflation rate, which equaled 9.5% in the January - August period. The uncertainty regarding the further movement in the prices of oil and food on international stock exchanges, as well as dominant prices of electricity, remained to be the main risk with regard to the inflation. As of September 12, 2008, the gross foreign reserves amounted to Euro 1,628.1 million, which is surge of Euro 96.7 million compared to the end of 2007. Such movements are reflection of the favorable flows in the balance of payments' capital and financial account, in conditions of significant deterioration of the current account deficit, which in the first half of 2008 reached Euro 408 million, compared to the surplus of Euro 92 million registered in the same period of the previous year. In August 2008, in comparison with the same month of the previous year, the broad money M4 went up by 22.2%, while the total placements of the banks with the private sector augmented by 39.9%.
On the today's session, the Council adopted the Report on the internal audit operations in the first half of 2008. The Council determined that the Program for the internal audit operations was completely fulfilled in the first half of 2008.
Governor's Office
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