**Serbia‘s Foreign Exchange Reserves Decline**
The Gross National Bank of Serbia (NBS) reported that the country’s foreign exchange (FX) reserves decreased by 276.1 million euros in January 2025.
**Reserve Amounts**
At the end of January, the FX reserves stood at 29,018.4 million euros. This amount covers 177.4% of money supply M1 and 7.3 months’ worth of the country’s imports of goods and services. The gross FX reserves are higher than twice the level prescribed by the adequacy standard.
**Net Reserves**
The net FX reserves (gross FX reserves minus banks‘ required reserves, IMF liabilities, and other grounds) came to 24,624.7 million euros, down from 24,693.3 million euros at the end of December.
**Reserve Movements**
A net outflow of 275 million euros was recorded due to NBS interventions in the local FX market. The main drivers were:
* A January FX sale worth 420 million euros
* An inflow from a net FX purchase concluded on the last two days of December, worth 145 million euros
Other factors that contributed to the outflow include:
* Banks’ withdrawal of required reserves (226 million euros)
* Government debt repayment under FX loans and other liabilities (237.3 million euros)
**Inflows**
Inflows to FX reserves in January came from:
* Interest and coupons on FX reserve management (44.5 million euros)
* Grants and other sources (59.5 million euros net)
**Market Factors**
A positive effect of market factors worth 358.2 million euros was driven by trends in the international markets, including an increase in US dollar gold prices and a strengthening of the dollar against the euro.
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