13.01.2025.
Climbing by EUR 589.9 mn from a month earlier and EUR 4,385.4 mn from end-2023, gross NBS FX reserves reached a record high level of EUR 29,294.5 mn at end-December 2024. They covered 167.2% of money supply M1 and 7.4 months’ worth of the country’s imports of goods and services, which is more than twice the level prescribed by the adequacy standard.
Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under the arrangement, and liabilities on other grounds) came at EUR 24,693.2 mn at end-December – the highest end-of-month level, up by EUR 236.4 mn from the month before and EUR 3,908.0 mn from end-2023.
The greatest inflows to FX reserves in December came from banks’ allocation of FX required reserves worth EUR 378.0 mn net (higher allocations are customary for a year-end) and NBS interventions, i.e. purchases in the domestic FX market worth EUR 355.0 mn. Net inflows also came from FX reserves management, grants and other sources, in the amount of EUR 84.4 mn.
The inflows were more than sufficient to compensate for the outflows recorded on account of the government’s net debt repayment in respect of FX loans and other FX liabilities (EUR 339.2 mn).
FX reserves were also propped up by a positive net effect of market factors worth EUR 111.7 mn, mainly reflecting the dollar’s appreciation against the euro by around 1.6% in the international market.
Gross FX reserves increased in 2024 (EUR 4,385.4 mn) largely on account of inflows from NBS interventions in the IFEM, i.e. net purchases worth EUR 2,715.0 mn. Inflows were also generated by banks’ allocation of FX required reserves worth EUR 837.9 mn net, FX reserves management (EUR 550.8 mn), grants and other sources (EUR 331.3 mn).
The inflows were more than sufficient to compensate for the outflows recorded on account of the government’s net debt repayment in respect of FX loans and other FX liabilities (EUR 1,830.6 mn).
Relative to end-2023, positive net market factors were recorded, worth EUR 1,781.0 mn, reflecting the increase in the price of gold by around 26.6% and the dollar gaining around 6.4% relative to the euro in the international market.
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Trading volumes in the IFEM amounted to EUR 811.1 mn in December, up by EUR 54.8 mn from the month before. In 2024, IFEM trading volumes totalled EUR 8,607.7 mn.
In December, the value of the dinar against the euro stayed broadly unchanged. Since the start of the year, the dinar gained 0.1% vis-à-vis the euro in nominal terms.
The NBS bought EUR 410.0 mn net in the IFEM in December. Since the beginning of 2024, the NBS bought EUR 2,725.0 mn net, in order to maintain the relative stability of the dinar against the euro.
In the course of 2024 as well, the NBS preserved the stability of the dinar exchange rate against the euro despite strong appreciation pressures in the domestic FX market, while at the same time making a significant contribution to a further increase in FX reserves.
Governor’s Office
