Bloomberg News

Serbian Foreign Exchange Reserves Drop in March for Third Month

April 11, 2012

Serbia’s foreign-currency reserves fell for a third month in March as the nation repaid debt to foreign creditors and the central bank sold euros to prop up the dinar.

Foreign-exchange reserves dropped to 11.07 billion euros ($14.5 billion) from 11.2 billion euros in February, 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 central bank spent 310 million euros in the foreign- exchange market in March to slow declines in the dinar, which has depreciated 6 percent in nominal terms since the start of the year, the bank said. The government repaid 112.5 million euros to foreign creditors.

Net reserves, excluding the funds commercial lenders keep with the central bank and funds from the International Monetary Fund, fell to 6.14 billion euros in March from 6.35 billion euros in February. The amount of net reserves equaled 461 percent of M1 money supply, up from 429 percent in the previous month and remained sufficient for more than seven months of imports, the bank said.

Interbank trading volumes of 1.01 billion euros in March were 673.8 million euros lower than in February, pushing the three-month trading volumes to 4.5 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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