Meeting with the IMF Mission: National Bank's measures contribute positively to inflation and foreign reserves, but risks are still present
Skopje, 14 September 2023 (MIA) – The National Bank’s decisions so far to increase the policy rate, as well as other measures aimed at monetary policy normalization, have brought down inflation and have also stabilized the foreign exchange market and increased foreign reserves. The risks are still present, however, which calls on the National Bank to continue applying prudent policies and take the necessary measures. This was emphasized at the meeting of Governor Anita Angelovska Bezhoska with Jacques Miniane, former IMF Mission Chief, and Annette Jacqueline Kyobe, the new IMF Mission Chief, as well as the vice governors of the National Bank.
The National Bank’s measures along with the favorable movements in global commodity prices have gradually reduced inflation to the current 8.3%. Moreover, the measures have also contributed to stabilization of euroization, which, together with the more favorable balance of payments performance in the first half of the year compared to the forecasts, resulted in a higher growth of the foreign reserves than expected, the National Bank said in a press release.
The better performance is due to the smaller trade deficit and more favorable private transfers. Thus, at the end of August 2023, the official foreign reserves were maintained at an adequate level of Euro 3,934.2 million, in part thanks to the National Bank interventions of purchasing foreign currencies on the foreign exchange market, reads the press release.
“The IMF representatives emphasized that the National Bank’s measures have had a positive contribution to both inflation and foreign reserves, but considering the still present uncertainty and risks, the National Bank should remain vigilant and continue taking the necessary measures,” reads the press release.
Governor Angelovska Bezhoska thanked the IMF Mission Chief, Jacques Miniane, noting that the fruitful cooperation has supported the implementation of many significant projects and activities. She also emphasized that the National Bank will continue adhering to the high international standards in its future operations.
