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Weekly Lists
September 28, 2018 www.intellinews.com I Page 26
bne:Credit
Macedonia’s central bank says no need
for denar devaluation amid uncertainty over referendum
Turkmenistan finally wipes out subsidised utilities for citizens
Macedonia’s central bank said on September 26 that there is no need for a devaluation of the local currency despite the uncer- tainty ahead of the upcoming name deal referendum. Speculation is growing that if the referendum ends in a no vote it will result in inflation and devaluation of the denar.
Macedonia is to hold a referendum on the crucial name deal with Greece on September 30. If voters approve the deal, the country’s name will be changed to North Macedonia, and Macedonia's EU and Nato integration processes will be unlocked. The opposition is against the deal and many opposition MPs have announced they will boycott the referendum.
“There are no reasons, nor there is any need to open debates about pos- sible devaluation of the denar,” the central bank said in the statement.
Turkmen President Gurbanguly Berdymukhammedov has signed
a decree, published on September 26, which is set to eliminate the remnants of his country's programme aimed at providing free natural gas, electricity and water to Turkmen residents. The programme has run since the 1990s.
Throughout recent years, Turkmenistan has taken steps towards end- ing the era of discounted gas, water and electricity prices for citizens by decreasing the amount of subsidised utilities per household – the newest decree appears to put a complete stop to such subsidies.
The decision features among the Turkmen government’s multiple desperate measures to rescue the country’s budget, which has been hit by years of over-reliance on natural gas exports and the government’s dubious spending habits.
The Czech National Bank (CNB) increased the main interest rate for the third time in a row at its September 26 policy-setting meet- ing, raising it by 0.25 percentage points (pp) to 1.5%. The main reasons for the current hike are, as previously, domestic.
As bne IntelliNews reported, the move was widely anticipated by the market and Czech analysts. Six out of seven present board mem- bers voted for the hike.
At the same time, some analysts forecast that CNB will hike the rate one more time in 2018 in November. “I think CNB didn’t say the last word and there will be one more increase,” said ING chief economist Jakub Seidler.
No surprise as Czech National Bank hikes rates by 0.25pp with another increase in sight