Foreign reserves of the NBS hit new record highs
At the end of January, gross and net foreign exchange reserves of the National Bank of Serbia were at their new highest levels since 2000, which is the year from which data has been monitored in this way, the NBS announced. Gross foreign reserves at the end of January 2020 amounted to were 13 billion and 694 million euros, which is 316 million euros more than in December 2019. Foreign exchange reserves at this level secure M1 money supply of 186 percent and six months of imports of goods and services, which is twice the standard. Net foreign exchange reserves (foreign reserves minus banks’ foreign currency funds on the basis of mandatory reserve and other bases) were at 11 billion and 640 million euros at the end of January and were 199 million euros higher than at the end of 2019. An increase in gross foreign reserves in January was the result of net inflows both on the basis of foreign exchange transactions (a total of 153.9 million euros) and on the basis of a positive market effect (162.1 million euros). Net inflows in January were generated on the basis of mandatory foreign exchange reserves due to the usual banks’ activities (90.1 million euros), NBS activity in the domestic foreign exchange market from the end of last year and in January this year (a total of 45 million euros), efficient management of foreign exchange reserves, donations and other bases (a net total of 18.8 million euros). The value of the dinar against the euro was almost unchanged in January and the NBS bought 15 million euros on the interbank foreign exchange market.