In the Report presenting the European Commission’s (EC) detailed annual assessment of the state of play of the reform progress in each candidate country and potential candidate over the last year, a positive assessment of the monetary policy and the National Bank of the Republic of North Macedonia is noted.
The EC assesses that from the aspect of monetary policy, the alignment of the country’s legal framework with the EU acquis is at an advanced stage, emphasizing that during the COVID-19 induced crisis, the central bank managed to maintain the financial stability and provided significant credit support for the citizens and the companies. The report also underlines the exceptional importance of the central bank independence, the National Bank said in a press release on Wednesday.
“A fully independent institution, free from interference from other powers, is vital to fulfill the central bank’s role as guarantor of monetary and financial stability”, the report says. The EC estimates that during the COVID-19 induced crisis, the central bank managed to maintain the financial stability and provided significant credit support for the citizens and the companies. It also notes that the National Bank reduced the policy rate to historic low of 1.25%, thus releasing the necessary liquidity in the economy aimed to induce economic activity.
The EC also points out that the monetary policy stance is in line with the current economic fundamentals, and the report highlights the growing trend of credit support, the press release reads. The report says that in addition to supporting the current economic recovery, the monetary policy is also closely monitoring the rising inflationary pressures. The statistics chapter provides a special assessment of the statistics that rests with the central bank.
“The European Commission notes that the central bank is fully committed to the statistical standards’ code of practice and builds its capacity for its full implementation. In the area of financial accounts statistics, the National Bank published for the first time the annual financial accounts data and made regular transmission of annual financial accounts stock data to Eurostat, with improved methodology and coverage for certain financial instruments.
The EC emphasizes that the National Bank produces statistics on the balance of payments and foreign direct investment according to the latest standards,” the press release reads. The report also notes that the Law on Payment Systems and Services that aims to align the domestic legislation with the EU acquis has entered government procedure, and that the National Bank has advanced the preparation of the relevant implementing by-laws.
It also notes that the National Bank has made progress in carrying out a technical analysis and detection of counterfeit money, elaborating new methodological tools as well as timely exchange of data with national and international authorities, reads the central bank’s press release.