Savings in local currency have increased by 33 percent or a third in the past year, which is impressive data from the National Bank of Serbia (NBS).
According to the latest available data, the dinar savings are currently 78 billion dinars and are more than four times higher than at the end of 2012 since it has been intensively growing, which testifies to the confidence of citizens in the local currency. Dinar savings increased by 10.9 billion dinars (about 22%) last year, and by 16.9 billion dinars since the beginning of this year, which is significantly higher than last year’s overall growth.
– The attractiveness and faster pace of growth of the dinar savings compared to the foreign exchange is a result of the growing confidence of citizens in the monetary policy of the National Bank of Serbia, especially the increased credibility of the local currency over the last seven years. The increase in dinar savings is a result of confidence in the local currency, which is a necessary condition. Growing confidence in the dinar is made possible by a longer period of low and stable inflation and a relatively stable exchange rate, to which the National Bank of Serbia contributes through its measures, NBS said.
In addition, the dynamic growth of dinar savings is influenced by more attractive interest rates compared to foreign currency savings, as well as a more favorable tax treatment, since interest on dinar savings, unlike foreign currency savings, is not taxed. The National Bank of Serbia has repeatedly pointed to the profitability of the dinar against foreign currency savings.
So, this year, on the occasion of World Savings Day, the National Bank of Serbia has carried out a regular analysis of savings. The analysis once again confirmed that saving in local currency is more profitable than saving in foreign currency – both in the short and long term – a saver who has been saving in dinars in the last year at a stake of 100,000 dinars would get around 2,700 dinars (or about 23 euros ) more than the depositor who deposited about 845 euros in foreign currency savings in the same period, or the equivalent of the said amount of 100,000 dinars.
The fact that this growth was achieved in the conditions of relaxation of monetary policies of both the National Bank of Serbia and the European Central Bank, and even in the conditions of interest rates decrease, indicates that the growth of savings indicates an increasing confidence of citizens in the domestic financial system.
– It should be noted that inflation in our country from former double-digit levels has been lowered to low and stable levels already in 2013, since when it has been maintained on average about 2%. The dinar is today at a similar level to that in August 2012 (it increased by about 1% against the euro), with the National Bank of Serbia increasing its foreign currency reserves to the highest levels since the measures further strengthen the stability and resilience of the domestic financial system – NBS informed.
