The article discusses the importance of exchange rate stability in a small country like Macedonia. It explores how expectations about future exchange rate movements can impact the economy. The study suggests that while a flexible exchange rate may seem beneficial, it could lead to higher interest rates and economic instability. The research emphasizes the need for caution when considering a shift towards a more flexible exchange rate, as it could have significant implications for the economy and financial system. Overall, the experiences of transitioning countries show that maintaining exchange rate stability is crucial for economic success.