At the end of last month, the gross foreign exchange reserves of the National Bank of Serbia (NBS) amounted to 13.5 billion euros, 800 million euros more than in July 2019, the central bank announced today.
At the end of July, gross foreign exchange reserves were lower by 435.3 million euros compared to the end of June and are the result of “settlement of foreign exchange liabilities of the state, as well as the need for the NBS to mitigate the effects of the corona crisis on the domestic economy.”
“The total effect on the basis of net foreign exchange sales and swap auctions is minus 240 million euros. In addition, market factors in the net amount of 109.9 million euros had an effect on the reduction of foreign exchange reserves in July,” the NBS said.
At the end of July, net foreign exchange reserves (foreign exchange reserves less banks’ foreign exchange assets on the basis of required reserves and other bases) amounted to 11.4 billion euros.
Net inflows into foreign exchange reserves during July were realized on the basis of efficient management of foreign exchange reserves, donations, and other bases (a total of 40.9 million euros).
In the last eight years, since August 2012, net foreign exchange reserves have more than doubled, the statement added.
“Foreign exchange reserves at this level provide coverage of the money supply M1 of 144 percent and six months of imports of goods and services, which is twice as much as the standard which determines the adequate level of coverage of imports of goods and services by foreign exchange reserves,” the NBS states.
The volume of realized foreign exchange trade on the interbank foreign exchange market in July amounted to 516.6 million euros and was 66.2 million euros less than in the previous month, and in the first seven months of this year a total of 3.95 billion euros was realized in interbank trade.
“The NBS sold 325 million euros net on the interbank foreign exchange market in July. Observed since the beginning of the year, the National Bank of Serbia sold 1,355 million euros net in order to maintain stability on the foreign exchange market,” the statement said, Nova Ekonomija reports.
