NBS: Saving money in RSD is more cost-effective than in foreign currency
The National Bank of Serbia (NBS) announced today that saving money in RSD was more cost-effective than in foreign currency, and that last year, savings in RSD increased by more than 20 percent.
„The NBS, together with the Government of Serbia, is trying to point out, through its measures, activities and communication with the public, the advantages of savings in RSD and to stimulate its growth, as an important aspect of the dinarization of Serbia’s financial system,“ the Central Bank said in a statement.
It is pointed out that savings in RSD increased almost three and a half times, from about RSD 18 billion in August 2012 to more than RSD 61 billion in December 2018, while foreign currency savings increased from almost eight billion euros to about 10 billion euros in the same period.
The NBS’s analyses show that a savings client that deposited 100,000 dinars for RSD savings in December 2012 and renewed the contract each year, in December 2018 received almost RSD 26,500 more than a savings client who deposited RSD 100,000 dinars in euros for foreign currency savings.
It was pointed out that the higher profitability of the dinar in relation to foreign currency savings was influenced by low and stable inflation and a relatively stable exchange rate of the dinar against the euro, relatively higher interest rate on savings in domestic currency than on foreign currency, as well as favourable tax treatment of dinar savings.