When the National Bank intends to absorb more liquidity it could make the interest rate more attractive for the banks. But, if it considers that it should not sterilize such excess liquidity, it will make the interest rate less attractive or will restrict the amount allowed for the banks to subscribe. Distinguished ladies and gentlemen, At this very conference last year, I also said that the National Bank will not build its relations with the banks from the position of arrogance. Quite contrary, the banks are our partners. Therefore, the National Bank will keep on informing and consulting with the commercial banks about the regulatory measures. In this respect, presently we analyze the latest request of the Banking Association concerning the treatment of foreclosures and we will soon launch a dialogue to find solution in favor of the Macedonian economy. Hence, there should not be any doubt that in future the National Bank will “hear the voice” of the banks. But, also, it should be clear that the National Bank does not discuss the monetary policy measures with anybody, not even the banks, before it makes a decision to adopt them. They are at the absolute discretion of the National Bank. This is a worldwide practice. Neither the European Central Bank, nor the Czech Central Bank, nor any other central bank throughout the world consults or informs the commercial banks on the monetary policy measures before it makes the decision.
Concerning the overrating of Denar exchange rate, I have presented, on several occasions, data on Denar real effective exchange rate that indicate quite the opposite. On this occasion I will only refer to the market. It is the market that determines whether a commodity is overrated or not. Since the beginning of August last year, the National Bank has only once sold euros on the foreign exchange market in the amount of Euro 4.5 million, and has purchased euros, approximately twenty times, on the foreign exchange market in the amount of Euro 170 million. Even countries that apply floating exchange rate much frequently intervene by selling foreign currency on the foreign exchange market, in order to defend their currency. 2  BIS central bankers’ speeches  Distinguished ladies and gentlemen, Euro area debt crisis is our greatest challenge in the period ahead. Due to the large scale trade, the recession in the euro area which is very likely, has adverse effects on the real sector of our economy. In such circumstances, other than the maintenance of inflation rate at the level of the euro area, we will use the monetary policy together with the macro-prudential policies to preserve the balances in the external and the banking sector. In a medium run, the challenges of the banking sector again arise from the euro area, related to the implementation of Basel 3 standards. It is very likely that it will cause “deleveraging” in the European banks, hitting seriously the lending activity of banks in the South East Europe.