admin1 – September 13, 2006 – 8:39am

Macedonia's foreign currency reserves currently cover 4.7 months of imports, exceeding the level required by the IMF. The Fund insisted that the foreign currency reserves this year total 4.3 months of import.

According to the recent data of the National Bank of Macedonia, at the end of July this year, the foreign currency reserves totaled 1.276 billion euros, which is a rise of nearly 35 million euros, or 2.8 percent, from the previous month. Imports in July stood at 268.6 million euros, which means that the foreign currency reserves covered exactly 4.75 months of imports.

The new government has not yet officially aired an opinion regarding the foreign currency reserves in terms of whether it would refrain from making any intervention or use some of them, such as state capital privatization proceeds, for public infrastructure investments.

A more precise answer to this question will most likely be obtained once the IMF mission leaves the country. Some experts in Macedonian hold that the reserves should not be tempered with, while others prefer using at least a portion productively to piling them up and keeping them idle.