NBS: FX reserves cover seven months of imports

BELGRADE - The National Bank of Serbia (NBS) FX reserves amounted to EUR 10,831.8 million at end-February, covering M1 by 351 percent or more than seven months of imports of goods and services.

The largest inflow to FX reserves came from bank allocations under foreign exchange reserve requirements (EUR 54.5 million net), sale of RS securities in the domestic financial market (EUR 49.6 million) and disbursement of loans and grants (EUR 31.4 million), the NBS statement reads.

Outflows from FX reserves were registered on account of settlement of liabilities to the IMF (EUR 100.6 million) and foreign creditors (EUR 62.5 million).

Net FX reserves, defined as FX reserves less banks' required reserves and drawings from the IMF, came at EUR 7,460.0 million.

Trading volume in the interbank foreign exchange market reached EUR 411 million, down by EUR 157.3 million from the month before. In the first two months of the year, the interbank foreign exchange market trading volume totaled EUR 979.3 million.

The dinar maintained its value against the euro in February, while the NBS intervened in the interbank foreign exchange market by selling EUR 280 million in order to ease excessive daily volatility of the exchange rate.

Photo Tanjug/R. Prelic, illustration