Skopje, 29 June 2024 (MIA) - Achieving a balance between price and financial stability was the main focus of the central banks, including the National Bank, over the past few years, wrote Governor Anita Angelovska-Bezhoska in a text published in Serbian weekly magazine NIN.

In the text, the Governor stressed that the central banks significantly tightened monetary policy by raising basic interest rates.

“What’s specific for us is that considering our monetary strategy of maintaining a stable exchange rate of the denar against the euro, the National Bank didn’t only rely on the interest rate but used a broad set of monetary measures. The monetary measures were also supplemented with macro-prudential measures, which were implemented for the first time during these years of crises,” the Governor wrote.

The cautious policies, according to the Governor, have led to a reduction of inflationary pressures without increasing risks in the financial system. What is especially important, Angelovska-Bezhoska added, is that the stability of the banking system was strengthened during the crisis period, which is also a prerequisite for the growth of the economy.

In the text, the Governor stressed that the capital adequacy of the banks reached 18.4 percent in 2023, which is the highest level in the last 17 years and is key for maintaining stability when facing possible risks, as well as from the aspect of loaning and supporting citizens and businesses.

Angelovska-Bezhoska added that despite the feeling of optimism, conditions remain uncertain, and risks still exist for the global and domestic economy in the short and midterm.  

“Therefore, further precaution is needed, especially when tracking and managing credit risk, whose importance increases amid conditions of uncertainty and tightened financial conditions,” wrote the Governor. 

Photo: NIN