Serbia’s central bank will likely purchase an unspecified quantity of euros on the local interbank market on Wednesday to stem gains of the dinar which has been bolstered by auctions of treasury bonds, governor Jorgovanka Tabakovic said.

According to its plan, in addition to two sales of treasury bonds held on Feb. 6 and Feb. 13, Serbia’s Debt Agency scheduled three more auctions this month for Feb. 20, 27 and 28. In the first quarter the debt agency plans to sell a total of 129.75 billion dinars.

“We will likely have to intervene today on the purchase side so the dinar would not strenghten as there are pressures because of auctions this month,” Tabakovic said at a presentation of bank’s February inflation report.

On Wednesday, the dinar traded at the rate of between 118.03 to 118.32, largely unchanged from the day before.

Source; Reuters

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