Bloomberg News

Serbian Central Bank Said to Sell Euros Today to Boost Dinar

March 13, 2012

The Serbian central bank sold 10 million euros ($13.09 million) today to boost the weakening dinar.

The Belgrade-based Narodna Banka Srbije said it was acting against the dinar volatility, not its trend, according to a statement posted on its website.

The central bank began selling the common currency after the dinar dropped to as low as 111.4140 to the euro. The central bank said it set the dinar rate for tomorrow at 111.0286 to the euro.

The National Bank of Serbia has spent 248.5 million euros since the start of 2012 to prop up the dinar, which some analysts see declining by 10 percent in 2012 as capital inflows dry. The dinar has lost 5.2 percent since early February and 7.4 percent on year, the seventh-worst performer of 176 currencies tracked by Bloomberg.

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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