The National Bank of Serbia is implementing a managed float exchange rate regime. The exchange rate is freely formed, based on supply and demand. As defined by the Memorandum of the National Bank of Serbia on Inflation Targeting as a Monetary Strategy and the monetary policy programme, the National Bank of Serbia may intervene in the foreign exchange market in order to ease excessive short-term volatility of the exchange rate of the dinar, to preserve price and financial stability and to maintain an adequate level of FX reserves.
FX swap auctions
In line with the calendar of regular FX swap auctions (EUR/RSD), the National Bank of Serbia organises two-week and three-month auctions of swap sale and purchase of euros for dinars. The aim of these auctions is to bolster development of the interbank swap market and to support banks in liquidity management and in overcoming the problems arising from the limits in interbank trading in the money market.