Serbia's FX reserves increase: This is what they amounted to in July

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National Bank of Serbia (NBS) FX reserves amounted to EUR 15,022.8 million at the end of July, 247.1 million more than the previous months.

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"They covered 137% of money supply (M1) and almost five months' worth of the country's import of goods and services, which is almost twice the level prescribed by the adequacy standard," the central bank has announced.

Net FX reserves (FX reserves less banks’ FX balances on account of required reserves and other grounds) came at EUR 12,334.3 million, having increased by EUR 427.2 million from the month before, a statement added.

The increase in FX reserves reflects primarily NBS activities in the local FX market (net inflow from FX purchases and swap transactions totaled EUR 367.0 million). A positive impulse also came from FX reserves management, grants and inflows from other sources, EUR 94.8 million net.

These inflows were more than sufficient to cover outflows in respect of usual bank activity with regard to FX reserve requirements (EUR 164.7 million), maturity of government FX securities in the domestic financial market (EUR 76.7 million), and government net debt repayment on account of loans and other grounds (EUR 60.8 million in total), said the NBS.

The effect of market factors was positive in July, equaling EUR 87.5 million net, chiefly on account of continued appreciation of the US dollar against the euro in the international market (2.5%).

Trading volumes in the IFEM amounted to EUR 1,064.3 million in July, up by EUR 148.3 million from the month before. In the seven months of the year, trading volumes in the IFEM totaled EUR 5,351.6 million, the central bank announced.

The dinar stayed broadly unchanged against the euro in July, while gaining 0.2% nominally since the beginning of the year.

The NBS bought EUR 435 million net in the IFEM in July. Since the start of the year, it has sold EUR 1,355 million net, in order to maintain relative stability of the dinar exchange rate against the euro, the statement concluded.

(Telegraf Biznis)