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Determinants Of The International Reserves In The Republic Of Macedonia

Author

Listed:
  • Neda Popovska-Kamnar

    (National bank of the Republic of Macedonia)

  • Miso Nikolov

    (National bank of the Republic of Macedonia)

  • Artan Sulejmani

    (National bank of the Republic of Macedonia)

Abstract

Adequate level of international reserves is an indicator of the stability of a country. The research for the deter- minants of the international reserves and their appropriate level was intensified after the Asian crisis in 1996 and especially after the world financial crisis in 2007.The main purpose of this paper is to try to identify the determinants of the foreign exchange reserves in the Republic of Macedonia. We used quarterly data for the period 2004-2016 mainly from the state statistical system of the country using OLS estimation technique. The empirical results from our OLS model show that there is a statistically significant relationship among foreign exchange reserve as a dependent variable and the policy interest rate, UPI of exports, nominal GDP and exchange rate (Euro/denar) as independent variables. The results show that the highest impact on the level of foreign reserves in Republic of Macedonia has the exchange rate.

Suggested Citation

  • Neda Popovska-Kamnar & Miso Nikolov & Artan Sulejmani, 2016. "Determinants Of The International Reserves In The Republic Of Macedonia," Journal Articles, Center For Economic Analyses, pages 51-61, December.
    • Handle: RePEc:cmk:journl:y:2016:p:51-61
    as

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    References listed on IDEAS

    as
    1. Sebastian Edwards, 1981. "The Demand for International Reserves and Exchange Rate Adjustments: The Case of LDC's, 1964-1972," UCLA Economics Working Papers 229, UCLA Department of Economics.
    2. Ms. Era Dabla-Norris & Mr. Jun I Kim & Ms. Kazuko Shirono, 2011. "Optimal Precautionary Reserves for Low-Income Countries: A Cost-Benefit Analysis," IMF Working Papers 2011/249, International Monetary Fund.
    3. Edwards, Sebastian, 1983. "The Demand for International Reserves and Exchange Rate Adjustments: The Case of LDCs, 1964-1972," Economica, London School of Economics and Political Science, vol. 50(199), pages 269-280, August.
    4. Harald Badinger, 2004. "Austria's Demand for International Reserves and Monetary Disequilibrium: The Case of a Small Open Economy with a Fixed Exchange Rate Regime," Economica, London School of Economics and Political Science, vol. 71, pages 39-55, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International reserves; exchange rate; interest rate; GDP; imports;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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