Bloomberg News

Serbia’s Foreign-Exchange Reserves Rise Sharply on Eurobond Sale

October 11, 2011

Oct. 11 (Bloomberg) -- Serbia’s foreign-exchange reserves rose 938.3 million euros ($1.27 billion) to 11.36 billion euros in September, mostly due to the country’s $1 billion debut Eurobond sale.

The Sept. 22 sale of 10-year Eurobonds contributed 724.3 million euros to the increase, while 146.5 million euros came from new mandatory deposits from commercial lenders. Another 28.4 million euros was the inflow from loan facilities and foreign donations, the Belgrade-based National Bank of Serbia said in an e-mail today.

Net reserves, excluding the funds commercial lenders keep with the central bank and funds from the International Monetary Fund, expanded to 6.55 billion euros from 5.81 billion euros in August, the Narodna Banka Srbije said.

On the spending side, the Balkan country paid 80 million euros to service debt in September and another 7 million euros for continuing compensation to individuals whose savings were frozen in the early 1990s.

The size of September’s reserves equaled 446 percent of M1 money supply, or more than eight months of imports and 1,515 percent of short-term debt, the bank said.

Interbank trading volumes fell in September to 2.1 billion euros from 2.42 billion euros in August, pushing January- through-September trade volumes to 15 billion euros, the bank said. The dinar gained a nominal 0.4 percent against the euro in September.

--Editor: Douglas Lytle

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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