NBS: FX reserves at EUR 9.9 billion at end-August

NBS FX reserves amounted to EUR 9,905.3 million at end-August, covering M1 by 419 percent, short-term debt by 2,723 percent and around seven months of imports of goods and services, NBS announced on its website.

The largest outflows from FX reserves during the month were registered in respect of repayment of debt to the IMF (EUR 107.2 million) and banks’ withdrawal of FX required reserves (EUR 96.0 million, net). The withdrawal took place in response to the amended NBS regulation, which raised the share of FX required reserves to be allocated in dinars. Other outflows from FX reserves included the settlement of obligations to foreign creditors (EUR 24.1 million), NBS interventions in the IFEM (EUR 15.0 million) and servicing of frozen FX savings (EUR 13.5 million).

The largest inflows to FX reserves during August came from the sale of euro-denominated government securities (EUR 37.6 million) and credit disbursement and grants (EUR 18.1 million).

Net FX reserves, defined as FX reserves less banks’ required reserves and drawings from the IMF, came at EUR 5,540.0 million.

Rising by EUR 113 million from July, trading volumes in the IFEM reached EUR 1,609.7 million. In the year to August, interbank trading volumes totalled EUR 11,357.3 million.

In early August, the NBS sold EUR 15 million in the IFEM in order to ease excessive daily volatility of the exchange rate. During the month, the dinar depreciated against the euro by a nominal 0.6 percent.