NBS Provides RSD 14.9 Billion of Liquidity for Banks

The National Bank of Serbia (NBS) has announced that it has provided RSD 14.9 billion of liquidity for banks at the additional three-month FX swap auction.

At yesterday's additional three-month FX swap auction, the NBS bought EUR 127 million, the amount demanded by the banks at the auction, at fixed swap points of 2.525.

This way, the NBS has provided dinar liquidity of a total of RSD 14.9 billion, at a favorable interest rate of 0.85%, which largely covers the costs of FX (EUR) depositing, at a negative interest rate in the international market.

The additional FX swap auction was organized to support the domestic financial system and economy amid the spread of the coronavirus (COVID-19).

– As so far, the NBS will keep a close eye on banking sector liquidity and movements in the domestic financial market, ready to hold additional FX swap auctions if necessary, as well as to use all other instruments at hand, in order to ensure smooth functioning of the local financial system in an environment of heightened uncertainty and risks caused by the COVID-19 contagion – the NBS said in an earlier press release.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

bank liquidity

FX purchase

swap auction

FX purchase auction

Covid 19

coronavirus