Serb Central Bank Said to Be Selling Euros to Support Dinar

The Serbian central bank sold euros to curb today’s declines in the dinar after it fell to as low as 111.2300 to the the common currency this morning in Belgrade, three traders said.

The Belgrade-based Narodna Banka Srbije sold 30 million euros ($39.33 million) to banks, lifting the dinar to 110.7622 to the euro, it said in a statement posted on its website.

The central bank has now spent 238.5 million euros since the start of 2012 to curb the weakening dinar, which some analysts see it declining by 10 percent this year as capital inflows dry.

The National Bank of Serbia will decide tomorrow on policy direction and the level of its benchmark interest rate, last lowered in January by a quarter of a percentage point to 9.50 percent.

Eleven of 23 economists in a Bloomberg survey see no rate change, six predict a quarter-point and two saw a half-point decrease. Four respondents expect an increase by 50 basis points.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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