NBM to sell treasury bills only once a month.
The National Bank of the Republic of Macedonia decided to reduce the number of auctions of treasury bills to one per month and to restrict their amount. Also, it introduced regular weekly repo-operations for securing liquid funds in the banking system.
"We are introducing changes in the operative OPERATIVE. A workman; one employed to perform labor for another.
2. This word is used in the bankrupt law of 19th August, 1841, s. 5, which directs that any person who shall have performed any labor as an operative in the service of any bankrupt shall be framework for implementation of the monetary policy. We have introduced for the first time operations for securing liquidity," National Bank Governor Dimitar Bogov explained.
At the auctions, Bogov said, the interest rate will be cut to around 4 percent. In his view, as it is, banks have enormous credit potential and liquid funds they can use for crediting. This year, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Bogov, the amount of treasury bills went up by 10 billion denars, a surplus created as a result of purchasing foreign currency.
"We are not going to sterilize sterilize /ster·i·lize/ (ster´i-liz)
1. to render sterile; to free from microorganisms.
2. to render incapable of reproduction.
1. the surplus of funds. Instead, we are going to direct them into other instruments," Bogov explained.
He informed that the projections of the National Bank that the economic activity would slow down, which reduces both export and import, are generally being realized.
"In the first quarter, we expect the foreign exchange reserves Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. to decline by 4 billion euros, yet this year we have a stable level of foreign ex-change reserves," Bogov said.
The credit growth, too, the Governor said, decreased in the first two months, which means it may well be below the projection.