Skopje, 29 January 2024 (MIA) - In response to the request of the National Bank of the Republic of North Macedonia, the European Central Bank (ECB) has approved an extension of the repo line, providing the central bank a continued access to Euro 400 million facility until 31 January 2025, the National Bank said in a press release on Monday.

"If drawn, the repo line provides quick access to euro liquidity and represents yet another buffer that guarantees the denar rate stability. The repo line can address possible liquidity needs in times of heightened geopolitical uncertainties and their potential risks to the global economy and financial markets," reads the press release.

According to the central bank, the domestic foreign reserves, as the main instrument for maintaining exchange rate stability, have reached a historic high.

"With the continued approval of the repo line, the European Central Bank has significantly supported the National Bank’s stability policies," it is stated in a press release.

The National Bank was given the opportunity to use the repo line at the onset of the COVID-19 pandemic crisis, in 2020, when the ECB allowed access to this instrument to non-euro area central banks, with the aim to prevent spillover effects in euro area financial markets and economies and to mitigate any adverse pandemic impact. The National Bank has been the leader and initiator among the central banks of the region for providing access to additional funds, reinforcing safeguard mechanisms, despite its stable foreign reserves level and solid bank liquidity. No funds from the repo line have been used so far, despite the multiple consecutive crises, reads the press release.

Photo: MIA archive