25th anniversary of the National Bank of the Republic of Macedonia

Skopje, 5th April 2017 (MIA) – During the last 20 years, we managed to preserve a price stability, with 2% inflation in average, stable foreign exchange rate and sound banking system, undergoing many real time-stress tests.

This was pointed out by the Governor of the National Bank of the Republic of Macedonia Dimitar Bogov, in his address at the NBRM conference, organized at the occasion of 25-years of monetary independence.

- Now, when we celebrate 25 years of monetary independence, we may say that we experienced different situations and managed to cope with several internal, as well as external shocks.  We learned a lot from our own experience, as well as from the other, and we achieved many goals.  We finally realized that we should work hard and put more efforts to the end of achieving better results in future, Bogov said.

He believes that the monetary policy was and will continue to be a safe partner to the macroeconomic policy in the country, thus contributing to maintaining the overall macroeconomic stability.

He urged the policy creators to implement the reforms more courageously, by focusing on flexible labour market, greater productivity, stronger competition and innovations. This, as he said, is an objective not only for the developing countries but also for the developed economies. - Alarm has been sounded for the fiscal policy as well, becoming too relaxed with the policy of low interest rates in many countries.  To the end of providing fiscal consolidation, the fiscal requirements should be tightened, Bogov said.

Minister of Finance Kirilo Minoski also had his address at the conference, saying that Macedonia continuously maintains macroeconomic environment, through low inflation rate, stable Denar exchange rate and prudent fiscal policy, being one of the key requirements for sustainable growth and predictable economic surrounding.

- In addition to the challenges arising from the international surrounding, Macedonian economy also faces challenges from the current political situation and under such circumstances, prospects for higher economic growth are limited, however, the economy experienced sound growth of around 3% in the last two years, Minoski said.

According to him, in addition to coordination of both monetary and fiscal policies, what is also important is the cooperation between the National Bank and the Ministry of Finance in the field of establishing and preserving a sound and stable financial system in the country. In this respect, he pointed out that both institutions have been working together in the past, as well as today, on preparation of regulations governing the position and the competences of the National Bank, as well as regulations on the banking system and the payment infrastructure.

Minoski pointed out the preparation of Bank Resolution Law, new payment systems regulations, as well as new Banking Law.

The sixth international research conference of NBRM, being traditionally organized at the occasion of marking the anniversary of the monetary independence of the Republic of Macedonia is titled as “Central Banking Under Prolonged Global Uncertainty: The Latest Lessons while Searching for the “New Normal”.

What is a novelty this year is the fact that the conference is organized within the joint event with the London School of Economics and their conference "Social Cohesion in SEE Countries”.

Research articles and papers of representatives of the Central Banks and the academic institutions in the region will be presented at the conference.