Central bank "will preserve stability of currency"

Central bank "will preserve stability of currency"

BELGRADE -- National Bank of Serbia (NBS) Governor Jorgovanka Tabaković said on Monday that the central bank will preserve the stability of the Serbian dinar.

The bank "will protect the national currency from speculative effects," she said.

Tabaković noted that the NBS did not spend much money on interventions in the financial market in order to preserve the stability of the dinar in the first three months of the year.

”The amount of money we spent is not a matter of concern. The NBS spent EUR 820 million but we have already purchased EUR 40 million and we did not allow the dinar to strengthen excessively,” Tabaković said replying to the question posed at the meeting in Belgrade on the deepening of the economic cooperation between Serbia and Great Britain organised by Eurosfera.

The governor underscored that the bank has the instruments to achieve the basic goal of the monetary policy embodied in the stability of prices.

“The prices in Serbia depend to a considerable degree on the agricultural product prices and budget deficit and in a euro-based economy, the prices depend largely on the exchange rate,” Tabaković said.

She noted that the NBS will try to preserve the foreign currency reserves on a high level as is currently the case.

The stability of the dinar and the level of foreign currency reserves offer the stability which will help everyone who needs to solve the foreign exchange imbalance and other forms of imbalance in the business system, Tabaković said.