The gross foreign exchange reserves of the National Bank of Serbia at the end of January amounted to EUR 20.913 billion (EUR 20,913.3 million), which is also the highest level of gross foreign exchange reserves at the end of the month since data have been monitored in this way since 2000, the NBS announced today.
In January, gross foreign exchange reserves increased by 1.49 billion euros(1,497.6 million euros). At this level of foreign exchange reserves, coverage of the M1 money supply of 182 percent and 5.8 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 reserves.
Net foreign exchange reserves (gross foreign exchange reserves minus banks’ foreign currency assets based on mandatory reserves, obligations to the International Monetary Fund based on arrangements and other bases) at the end of January amounted to EUR 16.97 billion (EUR 16,972.3 million) and compared to the end the previous year they were more by 1.54 billion euros (1,546.7 million euros).
The increase in gross foreign exchange reserves in January is primarily the result of inflows based on the sale of government securities in the total amount of 1.63 billion euros (1,631.5 million euros) issued on the domestic and international financial markets, the announcement stated.
On the international financial market, the Republic of Serbia realized two issues of Eurobonds with maturities of five and 10 years in the total amount of EUR 1.59 billion (EUR 1,594.0 million).
Net inflows were realized on the basis of management of foreign exchange reserves, donations and on other grounds in the total amount of 86.9 million euros.
The increase in foreign exchange reserves in January was additionally influenced by the positive effect of factors on the international market in the net amount of 39.9 million euros, which was largely the result of the increase in the price of gold by about 6.2 percent, while the weakening of the dollar in relation to to the euro by about 1.8 percent.
Outflows from foreign exchange reserves were realized on the basis of the net deleveraging of the state in the name of foreign currency loans and securities (a total of 114.0 million euros), then on the basis of the withdrawal of the banks’ foreign currency reserve and on other grounds (a total of 94.2 million euros).
Based on the interventions of the National Bank of Serbia, a net outflow of EUR 15 million was realized. The volume of realized foreign exchange trade on the interbank foreign exchange market in January amounted to 711.8 million euros and was 286.6 million euros less than in the previous month.
In January, the value of the dinar against the euro was almost unchanged, and the National Bank of Serbia net sold 225 million euros on the interbank foreign exchange market in order to maintain the relative stability of the exchange rate of the dinar against the euro.
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