Foreign exchange reserves

Foreign exchange reserves are foreign currency assets that are readily available to and managed by our monetary authorities. As set out in the Law on the National Bank of Serbia, the NBS decides on the creation and use, as well as management and investment of foreign exchange reserves in accordance with monetary and exchange rate policies and guidelines for FX reserve management, with a view to ensuring smooth settlement of the Republic of Serbia’s foreign liabilities. 

NBS foreign exchange reserves include:

  • NBS’s accounts receivable abroad,
  • securities,
  • gold,
  • foreign currency cash,
  • Special Drawing Rights and reserve position with the International Monetary Fund.

 In accordance with the Law on the National Bank of Serbia, the NBS manages foreign exchange reserves guided by the principles of:

- Liquidity – investing FX reserves in readily marketable instruments traded in financial markets in large daily volumes, i.e. instruments that can be promptly cashed in to settle all current and future external obligations in good time.

- Security – managing assets and liabilities in accordance with the structure of the Republic of Serbia’s foreign debt for the purpose of preserving the value of FX reserves by investing in blue chip securities and placing deposits with financial institutions such as central banks, international financial institutions and prime foreign commercial banks. 

The NBS Council of the Governor adopts the strategy of foreign exchange reserve management which defines the long-term framework for FX reserve investment.

Based on the adopted strategy, the Executive Board issues strategic and tactical guidelines which define in more detail the manner of FX reserve management, type of assets and FX reserve allocation.

For more information about FX reserve management please see the Foreign Exchange Reserve Management Strategy of the National Bank of Serbia.