Tabakovic at Kopaonik Business Forum: Preserved Relative Stability of Dinar to Euro One of Key Pillars of Financial Stability

The preserved relative stability of the dinar to the euro is one of the key pillars of financial stability, business certainty, investment and consumer trust, stated the governor of the National Bank of Serbia (NBS), Jorgovanka Tabakovic and criticized calls for an artificial weakening of the dinar relative to the EU currency.

– The preserved relative stability of the dinar to the euro even in the conditions of global uncertainty was an important barrier against a greater transfer of the effects of the growth of global prices on local prices. There are individuals who advocate an artificial depreciation of the dinar, and their only argument is support to exports. The NBS has an anchor that is called a stable exchange rate and we are holding on tightly to it – Tabakovic said at the Kopaonik Business Forum.

She reminded that, for a number of years, Serbia had been increasingly facing currency appreciation pressures.

– Also, the fact is that several episodes of a considerable weakening of the dinar in the period between 2000 and 2012 did not help the economy to grow, but had negative consequences on business and investment trust, inflation, inflation expectations, financial sector, but also the overall economic activities – the governor said.

To support this, she said that the exports of goods and services of EUR 38 billion in 2022 was 3.3 times higher that the export of goods and services of EUR 12.5 billion in 2012.

She also emphasized that the record FX reserves of Serbia of EUR 20.9 billion guaranteed the economic stability and that they were “a pillar of defense from a wide range of risks”.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

Jorgovanka Tabakovic

Kopaonik Business Forum

stability of dinar to euro

financial stability

artificial weakening of dinar

appreciation pressure

FX reserves of Serbia