Gross foreign exchange reserves of the National Bank of Serbia amounted to 16.11 billion euros at the end of January this year and were 343.7 million euros lower than at the end of 2021, the NBS announced.
Foreign exchange reserves at this level provide coverage of the money supply M1 of 140.4 percent and six months of imports of goods and services, which is twice the standard which determines the adequate level of coverage of imports of goods and services by foreign exchange reserves.
Net foreign exchange reserves (foreign exchange reserves reduced by foreign exchange assets of banks on the basis of required reserves and other bases) amounted to EUR 13.47 billion at the end of January and decreased by EUR 226.4 million compared to the end of last year.
The reduction of the NBS’s gross foreign exchange reserves was influenced by the activities of the central bank on the interbank foreign exchange market in the amount of EUR 240 million, due to increased demand for foreign exchange, primarily from energy importers.
In addition, the decrease in gross foreign exchange reserves was due to the withdrawal of banks’ foreign exchange required reserves in the net amount of EUR 161.5 million, as well as the government’s net deleveraging of EUR 13.1 million on loans and foreign currency securities issued on the domestic financial market.
Net inflows into foreign exchange reserves were realized on the basis of foreign exchange reserves management, donations and other bases in the total amount of EUR 45.7 million.
Net market effects were positive in January at € 25.2 million.
The volume of realized foreign exchange trade on the interbank foreign exchange market in January amounted to EUR 531.1 million and was EUR 395 million lower than in the previous month.
The value of the dinar against the euro remained almost unchanged in January. There was a seasonally characteristic increased demand for foreign exchange, primarily from energy importers, which is a continuation of the more intensive purchase of foreign exchange by these companies, which has been present since October last year.
In order to preserve the relative stability of the dinar exchange rate against the euro, the National Bank of Serbia was a net seller of foreign exchange on the interbank foreign exchange market in January (340 million euros), according to a statement from the NBS.
Writes: novosti.rs
