Bloomberg News

Serbian Foreign Exchange Reserves Extend Decline in February

March 12, 2012

Serbia’s foreign-currency reserves fell for a second month in February as investors moved away from government debt and the central bank sold euros to bolster the dinar.

Foreign-exchange reserves dropped to 11.2 billion euros ($14.7 billion) from 11.6 billion euros in January, the Belgrade-based Narodna Banka Srbije said in an e-mail today. Total foreign-exchange reserves stood at 12 billion euros at the end of 2011.

The reserves fell as investors withdrew 204.2 million euros from government securities that matured in February, while it spent 188.5 million euros to slow declines in the dinar, which depreciated by 5 percent since the start of 2012.

Net reserves, excluding the funds commercial lenders keep with the central bank and funds from the International Monetary Fund, fell to 6.35 billion euros from 6.7 billion in January. This equaled 429 percent of M1 money supply, down from 447 percent in the previous month and remained sufficient for more than seven months of imports,’’ according to the central bank. Last month’s reserves were sufficient to finance eight months of imports.

Interbank trading volumes of around 1.7 billion euros in February, were 128 million euros lower than in January, the bank said. Two-month interbank trading volumes stood at 3.5 billion euros, it said.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

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


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