Households’ euroization in the Republic of North Macedonia: Is it close or far from the optimal levels?

Tanja Jakimova (), Milan Eliskovski () and Artina Bedzeti Baftijari ()
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Tanja Jakimova: National Bank of the Republic of North Macedonia
Milan Eliskovski: National Bank of the Republic of North Macedonia
Artina Bedzeti Baftijari: National Bank of the Republic of North Macedonia

No 2022-02, Working Papers from National Bank of the Republic of North Macedonia

Abstract: The paper deals with the challenges stemming from the phenomenon of unofficial euroization in the Republic of North Macedonia. It tries to identify the main drivers of the households’ deposit euroization in the Republic of North Macedonia and contributes to the literature by providing an empirical measure of optimal level of euroization. With focus on the household deposits, it is an additional attempt to empirically estimate the optimal level of euroization in the Republic of North Macedonia, following an already published IMF study on this issue. Looking ahead, persistence in stability-oriented macroeconomic policies and measures for promotion of the use of local currency could further support the de-euroization trend in the Republic of North Macedonia.

Keywords: euroization; local currency; financial stability; monetary policy; prudential policy; Republic of North Macedonia (search for similar items in EconPapers)
JEL-codes: C32 E47 E58 (search for similar items in EconPapers)
Pages: 25
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-mon and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:mae:wpaper:2022-02

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