The National Bank of Serbia: Foreign exchange reserves above EUR 14 billion

The National Bank of Serbia (NBS) announced that the gross foreign exchange reserves amounted to EUR 14.09 billion at the end of June, which ensures the coverage of the M1 money supply of 132 percent.

Those foreign exchange reserves, as it is stated, can cover the import of goods and services for more than six months, which is twice as much as the standard that determines the adequate level of coverage of import of goods and services by foreign exchange reserves.

„Net foreign exchange reserves, i.e., foreign exchange reserves reduced by banks’ foreign exchange assets on the basis of mandatory reserve and other bases amounted to EUR 11.59 billion at the end of June,“ the statement said.

At the end of June, gross foreign exchange reserves were EUR 89.8 million lower than at the end of the previous month, which is primarily the result of a net outflow based on the payment of government liabilities, in the amount of EUR 229.7 million.

Other transactions that affected the foreign exchange reserves in June had a positive effect, a total of net EUR 139.9 million.

Net inflows into foreign exchange reserves were realized on the basis of activities of the National Bank of Serbia on domestic foreign exchange market because the total net effect of spot and swap transactions was plus EUR 124 million, banks’ mandatory foreign exchange reserves due to normal banking activities and foreign exchange reserve management amounted to a total of EUR 68.6 million, donations and inflows on other bases amounted to a total of EUR 70.6 million, thus were more than enough to cover other net outflows from foreign exchange reserves on other bases, a total of EUR 120.9 million, as well as negative net market effect of EUR 2.4 million.

The volume of realized foreign exchange trade on the interbank foreign exchange market in June amounted to EUR 496.6 million and was EUR 34.2 million higher than in the previous month.

The value of the dinar against the euro was almost unchanged in June, similar to the trend since the beginning of this year. The NBS has bought EUR 320 million since the beginning of the year to maintain relative stability on the foreign exchange market.

Izvor: Beta

Foto: BIZLife