The National Bank of Serbia (NBS) announced today that it has provided 125 million euros in liquidity to banks in an additional three-month swap auction for the purchase of foreign currency (euros) for dinars.
At yesterday’s additional three-month swap auction of the purchase of foreign currency (euros) for dinars, the NBS bought 127 million euros, which was also the demand of banks at the auction.
In this way, banks were provided with RSD liquidity in the amount of RSD 14.9 billion (125 million euros) at a favorable interest rate of 0.85 percent, which mostly covers the costs of depositing the acquired foreign currency (Euro) funds at a negative interest rate on the international market.
An additional foreign exchange swap auction was organized to support the domestic financial system and overall economic flows in a state of emergency in Serbia due to the spread of the corona virus.
The NBS stated that it closely monitors the banking sector’s liquidity and financial market developments and is ready to continue organizing additional foreign exchange auctions as needed, and to use all other instruments at its disposal to ensure the smooth functioning of the domestic money market and the entire financial system, Novi Magazin reports.
