Serbia’s gold reserves have increased significantly

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Due to the increased global uncertainty, we have decided to further increase the security and availability of our gold reserves, says the Governor of the National Bank of Serbia, Jorgovanka Tabaković. Reserves have increased significantly in recent years, and since the end of 2021, the central bank has 37.3 tons of gold at its disposal. The governor of the NBS expects that inflation will return to the limits of the allowed deviation from the target of three plus or minus 1.5 percent in the middle of the year.
In a Christmas interview for Novosti, Jorgovanka Tabaković said that Serbia bought gold on the international market at the end of 2019, when nine tons were bought, and at the end of 2020, when three tons were purchased.
“Our analyzes when making the decision to buy gold are based on the projection of long-term trends and additional strengthening of the security of our financial system,” said Tabaković.
She stated that gold is the most important custodian of values in the long run and a guarantor of protection against inflation and other risks, which, she says, is especially important in times of crisis and uncertainty.
She pointed out that the current gold reserves are 37.3 tons and that they have more than doubled compared to the end of 2012 because it was 15.3 tons at the time, adding that the value of gold has tripled from 0.6 to 1.9 billion euros.
“These data speak best about how visionary a move it was, but also the fact that 12 tons of gold bought on the international market was paid just under 1,600 dollars per ounce,” the governor stated.
The purchase of gold strengthened the financial stability of the country
Tabaković said that, when that price is compared to the current price of around 1,800 dollars, the conclusion is that the foreign exchange reserves have increased by about 78 million dollars, stating that the decision to buy gold has strengthened Serbia’s financial stability.
Asked whether Serbia will continue to buy gold, Tabakovic said that foreign exchange reserves are managed by taking care of their security and liquidity, and at the same time striving to ensure their maximum profitability, and that future decisions will be based on these principles.
On the domestic market, we regularly buy gold bars from the company ‘Srbija Zijin Copper’ from Bor, in my mandate more than 10 tons of gold were bought in that way. In the next period, we will increase gold from domestic production, and there is room for international purchase,” said the governor of the NBS.
Inflation is a global phenomenon
Answering the question about the jump in prices in the second half of 2021 and what awaits us in the coming period, the governor said that inflation is a global phenomenon and that the factors that affect its growth come mostly from the international environment.

“We are convinced that inflation will be declining for most of next year, and will most likely return to the three-plus-minus 1.5 percent target in the middle of the year, where it should remain in the medium term,” said Tabaković.
When it comes to whether the dinar exchange rate against the euro will remain the same, the governor notes that the relative stability of the exchange rate for more than nine years is a “strong anchor” that contributes to achieving numerous goals, price and financial stability, increasing business certainty and for citizens when making decisions about savings and spending.
“Therefore, for us, that stability has no alternative. Our country is open and integrated into international economic flows, so not only domestic factors but also factors from the international environment act on the foreign exchange market,” says Tabaković, RTS reports.