**Serbia‘s Foreign Exchange Reserves Decline in February**
The National Bank of Serbia (NBS) announced that the country’s foreign exchange reserves stood at 28,793.1 million euros at the end of February. This is a decrease from the previous month, when the reserves were 29,018.4 million euros.
**Reserve Coverage and Imports**
Despite the decline, the NBS said that the foreign exchange reserves still cover 180.8% of the country’s money supply M1. This means that Serbia has enough foreign currency to meet its short-term financial needs. Additionally, the reserves are equivalent to 7.2 months’ worth of imports, which is more than twice the level required by international standards.
**Net Foreign Exchange Reserves**
The net foreign exchange reserves, which take into account various factors such as banks’ balances and liabilities to international organizations, stood at 24,350.6 million euros in February. This is a decrease from the previous month’s figure of 24,624.7 million euros.
**February Outflows and Inflows**
The NBS reported that there were outflows from foreign exchange reserves in February due to various factors, including interventions in the local currency market to maintain stability (325 million euros) and government debt repayment (145.7 million euros). On the other hand, there were inflows from banks’ allocation of required reserves (69.2 million euros) and other sources (54.2 million euros).
**Market Factors**
The NBS noted that a significant positive net effect on foreign exchange reserves was due to trends in the international market, including an increase in the price of gold and foreign securities.
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