Serbia's foreign exchange reserves increased by EUR 648 mil. to EUR 13.5 bil.

by   CIJ News iDesk VII
2021-01-13   17:01

At the end of December 2020, according to preliminary data, the gross foreign exchange reserves of the National Bank of Serbia amounted to EUR 13.5 billion, which is EUR 648.1 million more than in November. During 2020, foreign exchange reserves were maintained at an adequate and stable level and increased by EUR 113.2 million.

Foreign exchange reserves at this level provide coverage of the money supply M1 of 130 percent and more than six months of imports of goods and services, which is twice the standard which determines the adequate level of coverage of imports of goods and services by foreign exchange reserves.

At the end of December, net foreign exchange reserves amounted to EUR 11.1 billion. The increase in foreign exchange reserves in December was mainly due to inflows from the privatization of Komercijalna Banka (EUR 395 million) and NBS activities through the net purchase of foreign currency on the domestic foreign exchange market (total net spot and swap effect of EUR 244 million).

An additional contribution to the growth of foreign exchange reserves was made by net inflows based on donations (EUR 122.4 million), efficient management of foreign exchange reserves and other bases (a total of EUR 47 million).

The volume of realized foreign exchange trade on the interbank foreign exchange market in December amounted to EUR 693.5 million and was EUR 135.1 million higher than in the previous month. In 2020, a total of EUR 6.56 billion was realized in interbank trade. The value of the dinar against the euro remained almost unchanged in December, as in 2020.