Serbia’s Central Bank (NBS) FX reserves amounted to EUR 10,123.8 million at end-July, covering M1 by 287 percent or around seven months of imports of goods and services.
Significant inflows to FX reserves came from the sale of euro-denominated government securities in the domestic financial market (EUR 68.6 million) and disbursement of loans and grants (EUR 34.6 million).
Outflows were registered on account of a reduction in the higher-than-prescribed allocations of banks’ FX required reserves (EUR 71.4 million, net), settlement of liabilities to foreign creditors (EUR 33.5 million), repayment of debt to the IMF (EUR 29.3 million) and servicing of liabilities under frozen FX savings (EUR 20.0 million).
Net FX reserves, defined as FX reserves less banks’ required reserves and drawings from the IMF, came at EUR 7,313.0 million.
Trading volume in the IFEM reached EUR 582.5 million, up by EUR 187.3 million on the month before. In the year to July, IFEM trading volume totalled EUR 3,083.4 million.
The dinar depreciated against the euro by 0.8% nominally, while the NBS intervened in the IFEM by selling EUR 40 million and buying EUR 10 million in order to ease excessive short-term volatility of the exchange rate.
Source NBS Governor`s Office
