Serbian Central Bank Sells Euros to Support Weak Dinar

The Serbian central bank sold euros for the fourth consecutive day to support the weakening dinar to stem its declines ahead of May 6 elections.

The Belgrade-based Narodna Banka Srbije sold 40 million euros ($52.9 million) today to “ensure smooth functioning” of the market, it said in a statement on its website.

The bank started selling euros this morning after the dinar weakened through 112 to the euro, said three traders with knowledge of the action, asking for anonymity because of banking policies.

The central bank has spent a total of 678.5 million euros since the start of 2012 to prop up the dinar, which has fallen 10.15 percent against the euro compared with the same period last year, according to data compiled by Bloomberg.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.