In 1992, the National Bank of Macedonia was created to issue currency, conduct monetary polices, and regulate the banking sector of the country.
Commercial banks in Macedonia include the Komercijalna Banka and Scopanska Banka, both in Skopje. The currency unit is the Macedonia denar (D EN ) introduced on 10 May 1993, at a rate of 1:1,000 against the coupon. The central bank also introduced a floating rate for the denar against major currencies. There are no security exchanges in the country.
Under a five-year stabilization program agreed with the IMF, the government is focusing on reducing inflation, overhauling the financial system and launching structural reforms. Despite the Greek blockade, the program met its fiscal targets in 1994 with the state deficit declining to 2.5% of GDP in 1994. Reform of the state banking system made progress in 1996, although banks are still lending to inefficient state enterprises. Privatization has made some progress with the privatization agency raising $8 million in revenue in 1994 through the sale of four large companies and 14 medium-sized and small companies.
The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $164.1 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $887.3 million. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 10.7%.