July 1 (SeeNews) - North Macedonia's central bank said on Friday it has decided to revise the denar and foreign currency reserve requirements for banks to further promote savings in local currency - the second such step since March.
The denar reserve requirement ratio will be lowered to 5% from 6.5%, while the foreign currency reserve requirement ratio will rise to 18% from 16.5%, the central bank said in a statement.
Furthermore, banks' reserve requirement in foreign currency in euro will be increased to 75% from 70%. The changes will come into effect on August 10.
The revisions is expected to allow banks to offer more favorable interest rates on denar savings, the central bank said.
The central bank cut the denar reserve requirement to 6.5% from 8% and increased the foreign currency reserve requirement to 16.5% from 15% in late March.