The NBS Head Office Building was built from 1888 – 1890, on the basis of blueprints designed by Konstantin Jovanovic (Vienna 1849 – Zurich 1923), son to distinguished artist Anastas Jovanovic...
11/05/2022
Gross NBS FX reserves amounted to EUR 14,113.6 mn at end-April, down by EUR 182.7 mn from a month earlier. This level of FX reserves covers 135% of money supply (M1) and five months’ worth of the country’s import of goods and services, which is almost twice the level prescribed by the adequacy standard.
Net FX reserves (FX reserves less banks’ FX balances on account of required reserves and other grounds) came at EUR 11,538.9 mn, having decreased by EUR 38.8 mn from end-March.
As in the month before, the decrease in gross NBS FX reserves in April reflects mainly the NBS’s activity in the IFEM aimed at maintaining stability (EUR 177.0 mn). Other contributors to the decrease were net outflows on account of banks’ FX required reserves (EUR 133.9 mn), as well as outflows due to net debt repayment by the government in respect of loans (EUR 108.4 mn), other payments for government needs and other grounds (EUR 143.6 mn in total).
FX inflows in April came from FX reserve management and other sources (EUR 92.4 mn net in total).
Net market effects were positive in the amount of EUR 287.8 mn and resulted mainly from the strengthening of the dollar against the euro in the international market (by around 5% in April).
Trading volumes in the IFEM amounted to EUR 677.5 mn, up by EUR 155 mn from March. In the four months of the year, trading volumes in the IFEM totalled EUR 2,304.8 mn.
After strong depreciation pressures in March, led by the energy importers’ buoyant demand for foreign exchange, but also by the citizens’ demand for foreign cash amid heightened global uncertainty over the Ukraine crisis, the situation concerning demand-side factors in the local FX market stabilised owing primarily to the National Bank of Serbia’s responsible conduct and timely and appropriate action to maintain stability in the domestic financial market.
The dinar strengthened against the euro in April by 0.1% nominally, while losing 0.1% nominally since the beginning of the year. To maintain relative stability of the exchange rate, the NBS sold EUR 155 mn in April and EUR 2,270 mn net in the four months of the year.
Governor’s Office
