Foreign exchange reserves of the National Bank of Serbia declined by EUR 160.4 million and equalled EUR 9,392.1 million in April. In dollar terms, foreign exchange reserves amounted to 14,624.4 million, resulting in the ratio of foreign exchange reserves over money supply (M1) of 333%.
Inclusive of foreign exchange reserves of commercial banks, which at end-April stood at EUR 720.6 million, the country’s overall foreign exchange reserves amounted to EUR 10,112.7 million or USD 15,746.5 million.
The highest contribution to the decline in NBS foreign exchange reserves in April came from the return of EUR 94.1 million to the Austrian company “A-Tek”, following deduction of EUR 6.4 million that had been paid in by “A-Tek” in respect of a tender bond, as the contract on sale of “RTB Bor” was called off. At the same time, EUR 18.9 million was paid out from foreign exchange reserves to settle obligations to foreign creditors.
The major contributor to growth in NBS foreign exchange reserves in April was the inflow from net purchase of foreign cash in the amount of EUR 31.2 million, which is EUR 10.6 million more than a month earlier. A significant inflow in the amount of EUR 9.0 million came from the German government donation for setting up the deposit insurance system in Serbia.
Following exceptionally low trading volumes in the IFEM in the course of March, the volume of trading in April tripled and reached EUR 1,501.8 million, which points to stabilization of this segment of the foreign exchange market.
In the course of April, the dinar appreciated against the euro by 2.7% in nominal terms, primarily as a result of the rise in the key policy rate and sale of foreign exchange by commercial banks to adjust foreign exchange risk ratios after change in regulations. The increase in share capital of banks and receipt of more encouraging signals from the Belgrade Stock exchange also played a role.
In the course of April, the National Bank of Serbia sold a total of EUR 64 million to commercial banks.
During the period under review, the official middle exchange rate of the dinar moved from 79.7047 to 82.2641 dinars for one euro, while in the first four months of 2008 the dinar depreciated against the euro by 1.1% in nominal terms.
Governor`s Office
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