The fixed exchange rate of the denar provides stability to citizens, firms and companies in the repayment of their loans tied to the euro, and also helps to avoid high price fluctuations as a result of import prices, the National Bank states in a post on "Facebook".

The announcement indicates that the stable exchange rate of the denar is a mechanism for macroeconomic discipline and for stable expectations and that the National Bank will maintain the exchange rate of the denar with all available instruments.

"We should bear in mind that the Macedonian economy is distinguished by a high level of foreign trade, which means greater susceptibility to the external environment, including changes in the exchange rate of the domestic currency in relation to foreign currencies. With a flexible exchange rate, it would mean a relatively quick and significant transfer of effects of exchange rate changes on domestic prices, given the high share of imported products. Another feature is that our economy is a net debtor abroad, which is also a natural feature for a country in this stage of development that needs additional capital. With a flexible exchange rate, a hypothetical decrease in the value of the denar would lead to a higher amount of indebtedness and possible difficulties in servicing the existing debt. At the same time, in conditions of a still relatively high level of euroization of our economy, changes in the exchange rate would also result in higher indebtedness of the population and companies, given the representation of total foreign currency loans (including denar loans with a currency clause) in total loans. , the post says.

By maintaining a stable exchange rate of the denar, the central bank says, the economy is protected from excessive price fluctuations and debt growth in foreign currency and stable market expectations are ensured, and all this is in addition to providing the most favorable environment for economic growth.