Anita Angelovska Bezhoska: 30 years of monetary independence Introduction speech by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of North Macedonia, at the marking of the 30 years of monetary independence, Skopje, 28 April 2022. *** Distinguished President of the Republic of North Macedonia, Distinguished Prime Minister of the Republic of North Macedonia, Distinguished Minister of Finance, Respected members of the Government Dear guests, It has long been said that history is a witness to the past, example and lesson to the present and lesson and warning to the future. Therefore, the celebration of the thirtieth anniversary of a momentous event, such as the monetary independence of the modern Macedonian state, is not just an honor and a motive for celebration. It is also an obligation, standing before the generations of devotees who have invested in what is today our modern monetary history, but also before the generations to whom we owe the future. As the great Goran Stefanovski once said, "Identity is a story about who we are, why we are, and what we want." Monetary independence and our currency - the denar are the central chapter in our story - an essential element of our identity. In 1991, the dream of an independent, sovereign and autonomous, modern Macedonian state came true. Yet, without the monetary independence that happened these days in 1992, without an independent central bank and without a national currency, our story would not have been complete.
The authorities have delegated this task to Norges Bank and decided that the Bank’s monetary policy objective is to keep inflation low and stable. The inflation target is quantified in the regulation on monetary policy as annual consumer price inflation over time of close to 2.5 percent. The Bank’s policy instrument is the key policy rate. Confidence that inflation will be kept low and stable is underpinned by the central bank’s independence. Norges Bank has a clear mandate and an independent position. This fosters trust in the Bank’s ability to do its job. But a regulation defining the inflation target and central bank independence are not enough. Confidence in the inflation target can only be upheld if the central bank actually ensures that inflation is low and stable over time, thereby maintaining monetary stability. Credibility and trust are built up over time. In Norway, inflation has been low and stable for a quarter of a century. As the expression goes, the proof of the pudding is in the eating. How is money created? Today, there are two forms of central bank money. One of the forms is common knowledge – banknotes and coins. The other, bank reserves at Norges Bank, is less well known. The sum total of banknotes and coins and bank reserves at Norges Bank is about NOK 85 billion.5 But the total money supply is much larger than this. Customer deposits in banks are also money. These deposits, referred to as deposit money, total more than NOK 2 trillion in Norway.