Gross foreign exchange reserves of the National Bank of Serbia amounted to 22.585 billion euros at the end of June, which is the highest level of gross foreign exchange reserves at the end of the month since the data has been monitored in this way (since 2000), the central bank announced today.
In June, gross foreign exchange reserves increased by 496.8 million euros.
At this level of foreign exchange reserves, coverage of the money supply M1 of 180 percent and six months of imports of goods and services is ensured, which is twice more than the standard that determines an adequate level of coverage of imports of goods and services with foreign exchange reserves.
Net foreign exchange reserves (gross foreign exchange reserves minus banks’ foreign currency assets based on mandatory reserves, liabilities to the IMF based on arrangements and other bases) also recorded the highest level at the end of the month and at the end of June amounted to 18,179.2 million euros (18.17 billion euros).
Compared to the end of May, they were 58.4 million euros more.
The increase in gross foreign exchange reserves in June is primarily the result of the interventions of the National Bank of Serbia on the domestic foreign exchange market through the net purchase of foreign currency (an inflow of EUR 315.0 million), as well as the usual slightly higher inflow at the end of the quarter based on the allocation of mandatory foreign exchange reserves of banks in the net amount of 259, 1 million euros and based on the withdrawal of the second tranche under the approved stand-by arrangement between Serbia and the IMF in the amount of 199.8 million euros.
Inflows were realized on the basis of management of foreign exchange reserves, donations as well as on other grounds in the total amount of 97.4 million euros.
The above-mentioned inflows were more than sufficient to compensate for outflows from foreign exchange reserves that were realized based on the net deleveraging of the state in the name of foreign currency loans in the amount of 100.2 million euros, as well as other payments for the needs of the state and on other grounds in the total amount of 85, 4 million euros.
The reduction of foreign exchange reserves in June was additionally influenced by the negative effect of factors on the international market in the net amount of 188.9 million euros, and to the greatest extent the result of the drop in the world price of gold in dollars by about 2.7 percent and the weakening of the dollar in relation to the euro by about 1.6 percent.
The volume of realized foreign exchange trade on the interbank foreign exchange market in June amounted to 740.3 million euros and was 62.2 million euros higher than in the previous month, reports Tanjug.
In the first six months of this year, a total of EUR 4,028.4 million was realized in interbank trade.
In June, the value of the dinar against the euro was almost unchanged, while since the beginning of the year the dinar has nominally strengthened against the euro by 0.1 percent.
The NBS bought EUR 540 million In the interbank foreign exchange market in June, while since the beginning of the year it has bought EUR 1,860 million in order to maintain the relative stability of the exchange rate of the dinar against the euro, thus alleviating the expressed pressures towards the strengthening of the dinar against the euro.
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