NBS: Foreign currency reserves are reduced
The foreign currency reserves of the National Bank of Serbia (NBS) amounted to EUR 11,325,700,000 at the end of August, which is EUR 77.7 million less than at the end of July, the NBS reported today.
This level of foreign currency reserves provides coverage of the money supply M1 of 194 percent and about six months of import of goods and services, which is almost twice the standard.
Compared to the end of August of the previous year, gross foreign currency reserves increased by about 1.05 billion euros.
At the end of August, net foreign currency reserves (foreign currency reserves reduced by the foreign currency reserves of banks based on obligatory reserves and other bases) amounted to EUR 9.46 billion, which is EUR 78 million less than at the end of July.
According to the NBS, the decrease in foreign currency reserves in August is the result of the state’s efforts to significantly reduce its foreign currency debt, which contributes to the reduction of Serbia’s public debt and the change in its currency structure in order to reduce foreign currency risk exposure.
Foreign currency trading on the interbank foreign currency market in August amounted to EUR 483.3 million and it was 21.4 million higher than in the previous month. Since the beginning of the year, in interbank trading, a total amount of about EUR 4.66 billion was realized.
In August, the dinar nominally weakened against the euro by 0.2 percent, and the NBS intervened on the interbank foreign currency market by purchasing EUR 190 million to alleviate the excessive daily fluctuations of the exchange rate.