FX reserves of National Bank Serbia reduced by EUR 349.9 million

The National Bank of Serbia's (NBS) foreign currency (FX) reserves amounted to EUR 9,500.9 million at the end of March, covering 238% of money supply (M1) and six months’ worth of imports of goods and services, the NBS said in a release on its website.

Net FX reserves (total reserves less banks’ FX required reserves and drawings under the arrangement with the IMF concluded in 2009) totalled EUR 7,882.0 million.

The March decline in total NBS reserves (EUR 349.9 million) reflects mainly the payment of obligations to foreign creditors and the redemption of maturing euro-denominated RS securities (EUR 286.6 million). In addition, outflows worth EUR 194.7 mln were recorded on account of NBS interventions in the interbank FX market, withdrawal of banks’ FX required reserves, servicing of liabilities under frozen FX savings, and other grounds.

Significant inflows into NBS FX reserves (EUR 187.1 million) came from the sale of euro-denominated RS securities in the domestic financial market, disbursement of loans and grants. A substantial amount also flowed in through successful FX reserves management last month, as a result of the payment of deposits for participation in the sale of Zelezara Smederevo and other inflows (EUR 77.7 million).

IFEM trading volumes reached EUR 623.3 million in March, down by EUR 52.7 million from the month before. In Q1 2016, interbank trading amounted to EUR 1,984.9 million.

In March, the dinar appreciated against the euro by 0.5% in nominal terms. The NBS intervened in the IFEM by selling EUR 175 mln in order to ease excessive daily volatility of the exchange rate.