What is the Macedonian denar (MKD)?
Credit Ratings & Outlook
Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
Central Bank Rate
The current central bank interest rate is 3.75%. This is lower than 2011, which was 4.00%.
In 2010 the total GDP was $9,189,454,662 in US Dollars, while the per capita GDP was $4,460. It grew by 1.80% over the previous year.
The latest unemployment rate for 2010 is 9.99%.
Consumer Price Index
The latest consumer price index for 2010 is 115.23.
The Macedonian denar (MKD), split into 100 Deni, is the official currency of the Former Yugoslav Republic of Macedonia. The denar was introduced on April 26, 1992. At the time of its introduction, the currency was equivalent to the Yugoslavia Convertible dinar. On May 5, 1993, the denar was reformed from being an Old denar to a New denar, with one New denar (MKD) being equal to 100 Old denar (MKN). Currently, the exchange rate regime in the Former Yugoslav Republic of Macedonia (FYROM) is what is referred to as a “managed float.” The exchange rate of the denar is established on the basis of supply and demand of foreign exchange markets. The denar exchange rate against the euro serves as a fundamental of the Former Yugoslav Republic of Macedonia (FYROM) monetary policy. Money supply and interest rates are dictated by the exchange rate target, which (as of mid-2005) is set at 61 denars to one euro, and has remained more or less constant at that level. With this exchange rate target, the country’s central bank (the National Bank of the Republic of Macedonia) has been maintained a stable denar exchange rate against the euro.
Sovereign Ratings for Macedonia
Macedonia is not rated.
What does it look like?
The emerging democracy of FYROM is governed under the constitution of 1991, which was amended in 2001. The Sobranie is the 120-seat unicameral legislature, whose members are elected for four-year terms by both single-seat constituencies and proportional representation. The executive branch consists of an elected president who is, in turn, aided by a council of ministers and a prime minister. On an administrative basis, the country is divided into 123 municipalities. The National Bank of the Republic of Macedonia is an independent legal entity.
Chief of State President Gjorge IVANOV (since 12 May 2009) Head of Government Prime Minister Nikola GRUEVSKI (since 26 August 2006) Cabinet Council of Ministers elected by the majority vote of all the deputies in the Assembly; note – current cabinet formed by the government coalition parties VMRO/DPMNE, BDI/DUI, and several small parties Elections president elected by popular vote for a five-year term (eligible for a second term); two-round election: first round held 22 March 2009, second round held 5 April 2009 (next to be held in March 2014); prime minister elected by the Assembly following legislative elections Election Results Gjorge IVANOV elected president on second-round ballot; percent of vote – Gjorge IVANOV 63.14%, Ljubomir FRCKOSKI 36.86%
Key Economic Factors
When Macedonia gained independence in September 1991, the nation was the least developed of the Yugoslav republics, contributing a meager 5% of the total federal output of goods and services. The breakup of Yugoslavia deprived Macedonia of its key protected markets and large transfer payments from the center. Economic growth was further hindered until 1996, by UN sanctions on the Federal Republic of Yugoslavia (its largest market) as well as a Greek economic embargo. Worker remittances and foreign aid softened the subsequent volatile recovery period; for the last few years, GDP has increased each year, rising by 5% in 2000. Furthermore, the country’s reserves were given a boost to 0 million at the turn of the century, due to successful privatization. The economy of Macedonia depends on outside sources for its oil, gas, and modern machinery.
Macedonia is a small, open economy that has taken an emphasis on international trade, with its total trade-to-GDP ratio at about 79.5%. With conflicts within the region and surrounding areas, Macedonia’s foreign trade balance has been in deficit since 1994. Its major trading partners include Serbia, Montenegro, Germany and Greece, and its main exports are steel, textile products, coal, chromium, lead, zinc, nickel, tobacco, lamb, and wine. In March 2003, Macedonia became a full member of the World Trade Organization with one of its most important economic policy goals being to attract foreign investment.
Macedonia’s main industries are: coal, metallic chromium, lead, zinc, ferronickel, textiles, wood products, tobacco, food processing, buses, and steel.
The nation’s main agricultural products are wheat, grapes, rice, tobacco, corn, millet, cotton, sesame, mulberry leaves, citrus, vegetables; beef, pork, poultry, and mutton.
1 Macedonian Denar to:
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- Other Currencies Accepted: Euro, United States Dollar
- Currency Peg:No
- Black Market for Currency:Probable
- Currency Volatility:unknown
- Estimated GDP Per Capita:.77 billion (2009 est.) .05 billion (2008 est.) .09 billion (2007 est.) note: data are in 2009 US dollars Macedonia has a large informal sector
- Languages Spoken:Macedonian 66.5%, Albanian 25.1%, Turkish 3.5%, Roma 1.9%, Serbian 1.2%, other 1.8% (2002 census)