Jorgovanka Tabaković, Governor of the National Bank of Serbia (NBS), has announced that Serbia now holds a record €27 billion in gross foreign exchange reserves and 46.5 tons of gold. In a recent parliamentary debate on amendments to the Law on Payment Services, Tabaković revealed that the NBS earned $20 million from the five tons of gold purchased in July.
Since August 2012, the NBS has acquired €10 billion in foreign exchange reserves, resulting in a 1.3 percent strengthening of the dinar. Tabaković expressed disbelief at some MPs mocking the country’s achievements, emphasizing the significant investment in stabilizing the dinar over the years.
She reviewed the performance of previous NBS governors, noting the following expenditures and currency weakening:
- From January 2001 to July 2003 under Mlađan Dinkić, €3.9 billion was spent defending the dinar, which weakened by 9.5%.
- From July 2003 to February 2004 under Kori Udovički, €1.1 billion was spent, and the dinar weakened by 7%.
- From February 2004 to July 2010, despite €7.4 billion spent, the dinar weakened by 34.4%.
- During Dejan Šoškić’s tenure from July 2010 to August 2012, €2.1 billion was spent, and the dinar weakened by 10.5%.
Since Tabaković’s appointment in August 2012, €10 billion has been invested in foreign exchange reserves, leading to a 1.3 percent appreciation of the dinar. She questioned whether this achievement was not understood or if it was simply a matter of national pride, given Serbia’s record reserves and gold holdings.
Tabaković also highlighted that Serbia’s gold reserves include 17 tons purchased abroad during the 2019-2020 pandemic crisis, and five more tons acquired on July 5. The increase in gold prices has generated $20 million in earnings, although the gold will not be sold but kept for security in unpredictable times.
