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Specific Research for the Issues Treated

Jeta Hani and Kadishe Limani, students in Master studies in Finance at SEEU’s Faculty of Business Administration, participated at the Second International Conference on European Studies held in Tirana  “Political, Economic and Social Challenges of the Balkan Countries in the Process of European Integration” on 6 and 7 November 2009.  On the first day of the conference they successfully presented their research, “Does Macedonia have to abandon its fixed exchange rate of Denar or to devaluate it?”


Macedonia, through a fixed exchange rate of Denar, will eliminate the possible importation of inflation from other countries. Based on detailed analyses about the Macedonian economy and the effects of global financial crisis on the most important macroeconomic indicators, our young researchers concluded that Macedonia needs to continue keeping its currency exchange rate fixed.  At this conference they recommended a restrictive monetary policy in order to be ignored the possible risk of loaning as a result of giving loans without cover up from the banks of the second level. According to our students, this can cause serious damage in the banking system of Macedonia.

Moreover, they argue that an eventual devaluation of denar can cause deterioration of the denars fluctuation and worsening the situation of the commercial banks. The only positive effect of the eventual devaluation can be the fact that Macedonia will have cheaper exports. But keeping in mind the fact that the world financial crises has attacked also the most important importers of Macedonia, EU countries (up to 50% of foreign trade Macedonia realizes with these countries), this decline of the Macedonian exports will not have a significant effect in the current account.

This research, in this conference, was valued as specific because of the concrete treated issue.
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