Serbia, Foreign exchange reserves 16.8 billion euros, News
The gross foreign exchange reserves of the National Bank of Serbia at the end of October amounted to 16.87 billion euros and were 369 million euros more than at the end of the previous month, the NBS announced today.
At that level of foreign exchange reserves, coverage of the M1 money supply of 148.7 percent and almost five months of imports of goods and services is ensured, which is almost twice as much as the standard that determines an adequate level of coverage of imports of goods and services with foreign exchange reserves, it was stated in the announcement. Net foreign exchange reserves or foreign exchange reserves less the foreign currency assets of banks on the basis of mandatory reserves and other bases at the end of October amounted to 13.91 billion euros and compared to the end of the previous month, they were more by 367.3 million euros.
The increase in foreign exchange reserves is primarily, as stated, the result of the purchase of foreign currency by the NBS on the domestic foreign exchange market in the amount of 480 million euros.
The increase in foreign exchange reserves in October was additionally influenced by net inflows on the basis of mandatory foreign exchange reserves of banks, management of foreign exchange reserves, donations and on other grounds, in the total amount of 148.3 million euros.
That, as stated, was more than enough to cover the net outflows for the settlement of foreign exchange liabilities of the state based on foreign currency loans in the net amount of 83.2 million euros and other bases, a total of 61 million euros, as well as a negative the effect of market factors in October in the net amount of 115.1 million euros. It is largely the result of the drop in the price of gold on the international market by two percent and the weakening of the dollar against the euro by 1.4 percent.
The volume of realized foreign exchange trade on the interbank foreign exchange market in October amounted to EUR 790.7 million and was EUR 61.5 million less than in the previous month. The value of the dinar against the euro in October was almost unchanged, while since the beginning of the year the dinar has nominally strengthened against the euro by 0.2 percent.
NBS bought 525 million euros on the interbank foreign exchange market in October.
“Responding to continuous pressures towards the strengthening of the dinar by buying foreign currency since May, in the net amount of 2.37 billion euros, the NBS fully compensated the net sale of foreign currency from the first four months of this year of 2.27 billion euros, so that from the beginning of the year to At the end of October, it bought 100 million euros net, in order to maintain the relative stability of the exchange rate of the dinar against the euro”, stated the NBS, reports Tanjug.
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