Thus, measured according to the costs of living index, the annual rate of inflation in 2001 on December basis (December 2001 / December 2000) is projected to equal 1.2%. In that sense, the National Bank of the Republic of Macedonia will continue with its intention to preserve that inflation rate to low, stable and predictable level, which is in compliance with the empirically confirmed knowledge that the price stability creates the most favorable macroeconomic environment for accelerated, long-term sustainable economic growth. The second aspect of the domestic currency stability is preserving the stability of the Denar exchange rate. The National Bank of the Republic of Macedonia managed to preserve the nominal exchange rate of the Denar against the Deutsche Mark at the targeted level of Denar 31 per 1 Deutsche Mark. The exchange rate stability was preserved, despite the developments on the foreign exchange market, where the supply significantly exceeded the demand for foreign currency. As a result, the National Bank of the Republic of Macedonia intervened on the foreign exchange market in order to prevent the appreciation of the domestic currency – Denar. From the beginning of the year to December 31, 2000,  BIS Review 9/2001  1  net-amount of USD 190.1 million was purchased on the foreign exchange market. Relating other currencies, the Denar fluctuated according to the changes of the exchange rate of the Deutsche Mark against these currencies on the world markets.
The higher purchase of foreign currency on the foreign exchange market acted towards increase in the NBRM gross foreign exchange reserves. On December 30, 2000 they 1 reached USD 713.6 million, thus increasing by USD 235.5 million compared to the end of 1999 . In 2000, the upward trend of the deposits with the banks continued due to the gradual strengthening of the confidence of the economic agents in the banking sector. Thus, on annual basis (December 2000 / December 1999), the total non-government deposits with the money deposit banks increased by Denar 6,906 million, or by 23.1%. In addition, the foreign exchange deposits registered more intensive growth of 49.1%, while the Denar deposits increased by 13.9%. Analyzed by maturity, both short-term and long-term deposits increased by 27.0% and 4.4%, respectively. It should be underlined that in 2000, the banks’ credit activity registered considerable expansion. Thus, in December 2000 relative to the same month of the previous year the total banks’ credits in favor of the non-government sector (according to the actual balance) increased by Denar 6,042 million, or by 17.2%. A good and close coordination between the monetary and fiscal policy created a room for such an increase in the credits, significant increment in the liquidity of the banks, removal of the credit ceilings by the NBRM and increased banks’ deposit potential. With respect to the currency of denomination, the increment in the total banks’ credits is solely due to the increased Denar credits, whereas the foreign currency placements registered a fall.