Skopje, 28 October 2024 (MIA) -- The National Bank has been successful in tackling financial shocks over the past few years, keeping inflation down and sustaining financial stability through its strong regulatory framework, according to International Monetary Fund Deputy Managing Director Bo Li at a meeting with National Bank Governor Anita Angelovska Bezhoska and Vice Governor Emilija Nacevska leading a Macedonian delegation on a working visit to Washington.

According to the National Bank in a press release, Governor Angelovska Bezhoska said the measures implemented by the central bank, along with global commodity prices leveling off, contributed to inflation dropping from 19.8 percent in October 2022 to 2.6 percent in September 2024.

It is expected that the average inflation rate in 2024 will be close to the National Bank's projections of 3.5 percent, similar to the 3.3 percent inflation rate projected in IMF's latest forecast.

"Through the wide set of measures including interventions in the foreign currency market, interest rates and mandatory reserves as well as through macroprudential measures, the central bank has managed to tackle inflation and strengthen the stability of the banking system," Angelovska Bezhoska is quoted as saying in the release.

According to the central banker, the measures helped cizitens and companies avoid excessive borrowing and strengthened trust in the domestic currency. The measures also contributed to better bank balances, she said, adding that this was essential for maintaining stability and provided room to maneuver in case of unfavorable changes.

Also discussed at the meeting with IMF Deputy Managing Director Bo Li was how important it was for the central bank to maintain its high level of credibility and independence as two key factors that had contributed to macroeconomic stability during several consecutive crises. 

According to the IMF, the release said, the National Bank was one of the highest-ranked central banks in the region and entire Europe in terms of independence.

"The National Bank's independence, accompanied by its transparency and accountability, ensures a high level of public trust in the central bank," the release said.

It added that the bank was also the first one in the region to be evaluated in an IMF pilot project using the IMF's new Central Bank Transparency Code. mr/