Bloomberg News

Serbian Central Bank Sells Euros for Third Day to Help Dinar

March 15, 2012

The Serbian central bank sold 20 million euros ($26.13 million), supporting the weakening dinar for the third consecutive day.

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. Earlier in the day three currency traders said the central bank’s act was a sign it won’t tolerate an exchange rate beyond 111 dinars to the euro.

The central bank began selling the common currency after the dinar dropped to 111.2515 to the euro in morning trade. It set the dinar rate for tomorrow at 110.9035 to the euro.

The National Bank of Serbia has spent 305.5 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. It has lost 5 percent since early February.

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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