15.10.2003.

Exchange Rate Fluctuations

Monday, October 13, 2003 saw the decrease of dinar value against the euro of approximately 1%, which stirred considerable curiosity in the public even though such movements were fully in line with the envisaged daily exchange rate fluctuations. Currency rate fluctuations remained in keeping with the mid-term policy of increasing foreign exchange reserves of the National Bank of Serbia and securing the balance of payment viability. It should be noted that only a week ago the dinar exchange rate went up by nearly the same percentage, only to turn on the downward path last weekend.

Comparative analysis show that the average exchange rate of the US dollar against the dinar in the last two weeks of September amounted to USD 1 = 57.8 dinars, whereas in the first two weeks of October it read: USD 1 = 56.4 dinars, which means that the dinar strengthened by 2.4% compared to US dollar.

Far from being unusual, exchange rate fluctuations represent a regular feature of both domestic and international economic flows. Viewed from the standpoint of daily foreign exchange rate positions, only during the last week the span of fluctuations of the US dollar exchange rate against the euro exceeded 2.5%.

Bearing all this in mind, the recent dinar exchange rate volatility of 1% against the euro compared to the position of a fortnight ago gives no cause for concern.

Press Releases from the Governor’s Office