At the end of July, the gross foreign exchange reserves of the National Bank of Serbia amounted to 14.58 billion euros, which provides coverage of the money supply M1 of 136 percent and more than six months of imports of goods and services, the National Bank of Serbia announced.
At the end of July, net foreign exchange reserves (foreign exchange reserves less banks’ foreign exchange assets on the basis of required reserves and other bases) amounted to 12.17 billion euros.
At the end of July, gross foreign exchange reserves were 488.5 million euros higher than at the end of the previous month, which is primarily the result of inflows based on the activities of the National Bank of Serbia on the domestic foreign exchange market in the amount of 510 million euros.
“The increase in foreign exchange reserves in July was additionally influenced by the inflow based on foreign exchange reserves management, donations and other bases (a total of 74.3 million euros) and the positive effect of market factors in the net amount of 96.8 million euros. These inflows were more than sufficient to cover outflows on the basis of net deleveraging of the state on the basis of loans and foreign exchange required reserves due to normal activities of banks (total 120.3 million euros), as well as outflows on other bases (total 72.3 million euros). The volume of realized foreign exchange trade on the interbank foreign exchange market in July amounted to 428 million euros and was 110.5 million euros lower than in the previous month. In the first seven months of this year, a total of 3.57 billion euros was realized in interbank trade,” the NBS said in a statement.
In July, as since the beginning of this year, the value of the dinar against the euro is almost unchanged. The National Bank of Serbia bought 380 million euros on the interbank foreign exchange market in July. Observed from the beginning of the year, the National Bank of Serbia bought 700 million euros net in order to maintain the relative stability of the dinar exchange rate against the euro, Danas reports.
