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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Tanja Jakimova & Milan Eliskovski & Artina Bedzeti Baftijari, 2022. "Households' euroization in the Republic of North Macedonia: Is it close or far from the optimal levels?," Working Papers 2022-02, National Bank of the Republic of North Macedonia.
    • Handle: RePEc:mae:wpaper:2022-02
    as

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    File URL: https://www.nbrm.mk/content/Households_euroization_in_the_R_N_Macedonia_WP2-2022.pdf
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    References listed on IDEAS

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    JEL classification:

    • 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
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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