National Bank of Serbia (NBS) gross FX reserves reach record 20.913 billion euros in January

Photo: Nikola Andjic

Gross NBS FX reserves reached EUR 20,913.3 million (EUR 20.913 billion) at end-January, their highest end-of-month level on record since 2000, the central bank has announced.

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In January, gross NBS FX reserves increased by EUR 1,497.6 million. They covered 182% of money supply M1 and 5.8 months’ worth of the country's import of goods and services, which is almost twice the level prescribed by the adequacy standard.

Net FX reserves (FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under SBA, and other grounds) came at EUR 16,972.3 million, having increased by EUR 1,546.7 million from the end of last year.

The January increase in gross FX reserves reflects primarily the sale of government securities worth EUR 1,631.5 million in the local and international financial market, a statement said.

The Republic of Serbia priced a dual tranche in the international financial market, issuing two eurobonds, with the maturity of 5 and 10 years, in the total amount of EUR 1,594.0 million.

A net inflow of EUR 86.9 million also came from FX reserves management, donations and other sources.

FX reserves received impetus also from the positive effect of factors in the international market in the net amount of EUR 39.9 million, driven largely by the around 6.2% increase in gold prices, while the weakening of the dollar against the euro by around 1.8% worked in the opposite direction, said the NBS.

Outflows from FX reserves were driven by the net government debt repayment in respect of FX loans and securities (EUR 114.0 million in total), and withdrawal of FX required reserves by banks and other factors (EUR 94.2 million in total).

NBS interventions accounted for an outflow of EUR 15 million net. Trading volumes in the IFEM amounted to EUR 711.8 million in January, down by EUR 286.6 million from the month before.

The dinar stayed broadly unchanged against the euro in January, while the NBS sold EUR 225 million net in the IFEM to maintain relative stability of the exchange rate.

(Telegraf Biznis)