The National Bank of Serbia (NBS) announced that it has successfully met one of its key strategic objectives for the year: securing an investment-grade credit rating for the country.
In a statement outlining the central bank’s 2024 achievements, the NBS highlighted the return of inflation to its target of 3%, with a permitted deviation of plus or minus 1.5%. Inflation has remained within this target range since May.
The NBS also noted the relative stability of the dinar against the euro, with the dinar strengthening by 0.2% against the euro. Through its interventions on the foreign exchange market, the NBS has purchased a net total of 2.5 billion euros as of December 25.
This year marks the seventh time in the last eight years that the NBS has been a net buyer of foreign currency, with a cumulative total of 11.6 billion euros since 2017. The NBS also reported that gross foreign exchange reserves have reached a record level of 29 billion euros. Furthermore, the NBS increased its gold holdings by 8.1 tons, bringing the total to a record 48 tons, valued at 3.9 billion euros, which now constitutes 13% of Serbia’s foreign exchange reserves.
In terms of domestic financial activity, 2024 saw a record nominal growth in dinar savings, which increased by over 49 billion dinars (35%) to surpass 187 billion dinars.
Interest rates on new dinar loans to households were reduced by more than 200 basis points, while loans to the economy saw a reduction of over 50 basis points as of November.
The NBS also implemented regulatory measures to support the state’s housing loan program for young people and temporarily limited interest rates on credit contracts for individuals. These measures are part of the central bank’s broader commitment to safeguarding the interests of financial service users, which will be further regulated by law.
Additionally, Serbia has achieved a new record for foreign direct investment, with over five billion euros in inflows in 2024.
As further evidence of Serbia’s improving economic position, the International Monetary Fund (IMF) granted Serbia a three-year non-financial advisory Policy Coordination Instrument. This instrument is intended for countries that implement sound economic policies, further affirming Serbia’s positive economic trajectory.
