Today, the National Bank of the Republic of Macedonia Council held its first session
Press release of the NBRM
Today, the National Bank of the Republic of Macedonia Council held its first session.
At the session, the National Bank Council discussed the latest Quarterly Report. During the last quarter of the year, the monetary conditions remained unchanged and the maximal interest rate on the CB bills auctions remained at the level of 3.25%. The decision not to change the key interest rate was based on the latest reassessment of the macroeconomic projections of the NBRM in October and on the performances of the key macroeconomic and financial indicators, which confirmed the current setting of solid domestic economic growth that does not create imbalances through inflationary pressures or pressures for reduction of the foreign reserves.
The export sector remains to be the main growth driver, which largely reflects the utilization of new export capacities. In general, investment activity gave a strong impetus, and private consumption continued to grow supported by the growth in disposable income, coupled with increased credit flows from domestic banks allocated in the household sector. The structure of growth in the third quarter was more favorable, with a greater contribution of the investment at the expense of private consumption.
Within the external sector, in the third quarter of 2014, the current and capital accounts recorded a surplus of Euro 120.4 million, or 1.4% of GDP, which is a slightly better position in the current account compared with the expectations, amid an improved trade balance. Government borrowing on the international market was the main source of foreign exchange inflows, with the favorable terms being used for providing early funding of future budgetary needs. According to the latest available data for the fourth quarter of 2014, foreign reserves were almost unchanged on a quarterly basis, and their dynamics was slightly more favorable than that envisaged in the framework of the October projection.
During the last quarter, the credit activity continued to increase, with the share of lending to the corporate sector in total loans being higher than its average share in the first three quarters. At the end of December, total loans were higher by 10% on an annual basis, with the growth in loans in 2014 being by 1.6 times higher than that registered in the previous year.
In summary, recent developments suggest further maintenance of an adequate level of foreign reserves, reduced inflationary pressures and enhanced credit support of the economic growth by the banking sector. Leaving the zone of accommodative monetary policy in the next period will depend on the changes in the external position of the economy and the effects on foreign reserves.
At today's session, the National Bank Council also reviewed the Report on the operations of the Audit Committee during the period from May 2013 to December 2014.
The National Bank Council also adopted the Decision amending the Decision on the manner of determining and publishing the exchange rates of the National Bank of the Republic of Macedonia. Among other things, this Decision defines the technical adjustment following Lithuania's membership in the European Economic and Monetary Union, starting from 1 January 2015. Since the domestic currency, Lithuanian litas, is being replaced by the euro, the Lithuanian litas needs to be exempted from the official exchange rate list of the National Bank of the Republic of Macedonia.
The National Bank Council adopted the Information on the design of the new banknotes of 200 denars. Leitmotif of the obverse of the conceptual, and art and graphic design of the 200 denar banknote is the relief which belongs to the infamous terracotta icons from Vinica, one of the most important early medieval archaeological discoveries on the territory of the Republic of Macedonia. On the same side, in the left center field, there is a presentation of an early medieval bow bronze fibula from the beginning of the VII century, found near Prilep. The reverse of the banknote contains a presentation of an architectural and art element of the frontal facade of the "Colorful (Aladzha) Mosque" in Tetovo, one of the most attractive monuments of architecture and art from the Ottoman period in the Republic of Macedonia, complemented by floral elements taken from the decoration of the marble floor tiles of the famous "Isaac Mosque" in Bitola, built at the beginning of the XVI century.
At today's session, the National Bank Council, based on the planned schedule of activities, also adopted the Decision on issuing the collector coin "Aries" from the "Zodiac signs" series. The coin "Aries" will be issued in a denomination of 10 denars, in 7000 pieces.
The Council also discussed other matters within its jurisdiction.