**Serbian Central Bank Reports Record-Breaking Foreign Exchange Reserves**
The National Bank of Serbia (NBS) announced that its gross foreign exchange reserves reached a record high level of 29,294.5 million euros at the end of December 2024. This represents an increase of 589.9 million euros from a month earlier and 4,385.4 million euros from the end of last year.
**Strong Coverage of Imports**
The NBS said that its foreign exchange reserves covered 167.2 percent of the country’s money supply (M1) and 7.4 months’ worth of imports, exceeding twice the level prescribed by the adequacy standard. This indicates a strong level of protection for Serbia’s economy.
**Net Foreign Exchange Reserves**
The net foreign exchange reserves, which exclude banks‘ foreign exchange balances, liabilities to the IMF, and other liabilities, stood at 24,693.2 million euros at the end of December, representing an increase from both the previous month and last year.
**Sources of Inflows**
The NBS attributed its record-breaking foreign exchange reserves to significant inflows from various sources, including banks’ allocation of required foreign exchange reserves (378 million euros), NBS interventions in the domestic foreign exchange market (355 million euros), and other sources (84.4 million euros). These inflows more than compensated for outflows related to government debt repayment.
**Market Factors**
A positive net effect of market factors, mainly due to the dollar’s appreciation against the euro by 1.6 percent, also contributed to the increase in foreign exchange reserves.
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