Serbian central bank: Foreign exchange reserves decline in January  

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**Serbia’ Foreign Exchange Reserves Decline**

The Gross of Serbia (NBS) reported that the country’s foreign exchange (FX) reserves decreased by 276.1 million euros in .

**Reserve Amounts**

At the end of January, the FX reserves stood at ,018.4 million euros. This amount covers 177.4% of money supply M1 and 7.3 months’ worth of the country’s imports of 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 ‘ 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**

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 markets, including an increase in dollar gold prices and a strengthening of the dollar against the euro.

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