English

Dollar movements can’t jeopardize our banking system

Žugić na sastanku

It’s very difficult to forecast US dollar exchange rates, having in mind the frequency of recent movements, the Central Bank Governors’ Club of the Central Asia, Black Sea Region and Balkan Countries concluded at the meeting held in Bucharest on 19-21 September. The governor of the Central Bank of Montenegro, Radoje Žugić, has been attending the meeting and has told that dollar movements can’t jeopardize stability of the Montenegrin banking system, as share of dollar-denominated lending is small and negligible.

The meeting attendees stated: “Dollar might affect financial stability and growth potentials, but we do not expect the long-term consequences, bearing in mind that a strong currency can have some other negative effects on the American economy.”

Some governors consider that a strong dollar can actually undermine US industry, as China’s companies are becoming more competitive.

The governors and other high officials in the area of monetary policy and finances, who also attended the meeting, exchanged opinions and shared their views on current issues/challenges, wishing to further enhance mutual cooperation.

The Central Bank of Montenegro has been the member of the Central Bank Governors’ Club of the Central Asia, Black Sea Region and Balkan Countries since 2005.

 

 

 

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