At the end of July, the gross foreign exchange reserves of the National Bank of Serbia (NBS) amounted to 13.5 billion euros, which is 800 million euros more than a year ago, the NBS announced today.
Foreign exchange reserves at that level provide coverage of the M1 money supply of 144 percent and six months of imports of goods and services, which is twice as much as the standard.
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.
At the end of July, gross foreign exchange reserves were lower by 435.3 million euros compared to the end of the previous month and are the result of settlement of foreign currency liabilities of the state (net amount of 126.3 million euros), as well as the need for NBS activities in the domestic foreign exchange market to mitigate the effects of the corona crisis on the Serbian economy (total effect based on net foreign exchange sales and swap auctions – 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.
As stated in the statement of the NBS, 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).
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 lower than in the previous month. In the first seven months of this year, a total of 3,952.7 million euros was realized in interbank trade.
In July, as since the beginning of this year, the value of the dinar is almost unchanged in relation to the euro. In order to maintain stability on the foreign exchange market, the NBS sold 325 million euros net on the interbank foreign exchange market in July, and one billion and 355 million euros since the beginning of the year, BizLife reports.
